The EUR gave up early gains this morning, with weaker growth forecasts and upward revisions to inflation forecasts doing the damage.
It was a relatively busy Eurozone economic calendar, with Eurozone trade data and EU Economic Forecast in focus this morning.
In March, the Eurozone’s trade deficit widened from €7.6 billion to €16.4 billion.
According to Eurostat,
While the trade data disappointed, the EU Economic Forecasts drew greater interest this morning.
For 2022, the European Commission forecasts growth of 2.7% and 2.3% for 2023. While the Commission revised both downwards, the 2022 revision was most marked.
In February, the European Commission forecast growth of 4.0% for 2022 and 2.7% for 2023.
The European Commission also made marked revisions to inflation forecasts.
For 2022, the Commission forecasts an annual rate of inflation of 6.1%, compared with 3.5% in the winter forecast. The Commission revised inflation for 2023 from 1.7% to 2.7%.
The European Commission cited the war in Ukraine as the key factor in the downward revisions to growth and upward revisions to inflation.
Ahead of today’s numbers, the EUR fell to a current-day low of $1.03892 before finding support.
In response to today’s stats and forecasts, the EUR rose to a post-stat and a current-day high of $1.04359 before falling to a post-stat low of $1.04196.
At the time of writing, the EUR was up by 0.10% to $1.04225.
NY Empire State Manufacturing Index numbers from the US that should have a muted impact on the EUR.
FOMC member chatter will draw interest, however. FOMC member Williams is due to speak later today.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.