Euro Under Pressure Near 1.1750 as Eurozone Economic Sentiment Worsens
EUR/USD weakened on Tuesday (April 21st), dropping to a session low of around 1.1750 after failing to extend the previous day's gains, which had stalled around 1.1790. Pressure stemmed from deteriorating European economic sentiment data, which reinforced the market's view that the region's growth prospects were weakening.
The ZEW survey showed institutional investor sentiment towards the German economy fell sharply to -17.2 in April, the weakest since December 2022. This figure was well below the market forecast of -5 and fell from -0.5 in March, indicating a deeper-than-expected decline in confidence.
The assessment component of current economic conditions also deteriorated. Germany's "current situation" indicator fell to -73.7 in April from -62.9 in March, reflecting a perception that current economic activity conditions are weakening.
Regional sentiment also weighed on the euro. Eurozone economic sentiment fell to -20.4, also the lowest since December 2022, contrary to market expectations of a modest improvement to -3.6 from -8.5 the previous month.
Beyond data factors, the market is also monitoring geopolitical developments related to the US-Iran conflict, which is seen as weighing on Europe through energy channels and business confidence. The Wall Street Journal reported that Tehran expressed its willingness to send a delegation to Pakistan through regional mediators, despite Iran's previous threats to withdraw from the peace process following the US military's seizure of an Iranian cargo ship. Reuters quoted a US source as saying that "the process is moving forward," which helped maintain moderate market optimism. (gn)
Source: Newsmaker.id
