Euro faces pressure from slowing eurozone business growth, Currencies Direct says
SPY•The euro may face further pressure if Germany’s IFO business climate index shows deteriorating confidence this month. Slower eurozone business growth in October dampened expectations of an ECB rate hike later this week.
1. Euro outlook
The euro may face further pressure if Germany’s IFO business climate index shows deteriorating confidence this month. October’s preliminary eurozone PMIs showed slower business growth, dampening expectations of an ECB interest rate hike later this week.
2. Other currencies
Sterling may remain subdued ahead of Wednesday’s Autumn Budget after a larger-than-expected contraction in UK retail sales. US dollar movement may be limited ahead of Wednesday’s Federal Reserve decision, while the Canadian dollar could surrender some of Friday’s gains as oil prices retreat from their highs.
