On Friday, the 22nd of February, data revealed that the German business confidence had fallen for the sixth consecutive months in a row, and the Euro took another tumble leaning towards $1.1330 on weekly closure amid gloomier eurozone economic outlook.
Since January, a flurry of poor eurozone data had foundered critical supports for the euro, which edged lower on Friday (February the 22nd), after remained dithered for the most part of the day.
According to a survey revealed on Friday (February 22nd), the business morale in February dropped for six straight months in a row in Germany, the financial kingpin of eurozone and the mainspring of eurozone economy. So far, Italian economy is technically in a recession and Germany narrowly averted a recession last week, while the French budget would soon likely to be disputed by the EU Commission ahead of another EU election due in May.
Amid a basket of baleful data and weaker corporate earnings since the beginning of the year, euro outlook is focused on whether a slowdown in the European growth could be averted. Addressing to a wary growth outlook in German economy weighing heavily on euro, a Forex strategist at Commerzbank in Frankfurt, Esther Reichelt said, “In the end, it is mainly the prospect of the stuttering growth driver Germany that is contributing to the uncertainty regarding the EUR outlook. ”