Building evidence over the economic fallout from the energy price shock in the eurozone has put the euro under increased selling pressure, MUFG Bank's Lee Hardman says in a note. Eurozone economic data have been worse than expected on balance since April, encouraging market participants to scale back European Central Bank rate-rise expectations, he says. Softer growth remains a headwind for the euro in the near-term, although if energy prices stabilize at lower levels it will encourage an economic recovery later this year and support the currency, he says. The euro falls 0.2% to $1.1395, having reached a one-year low of $1.1324 last Wednesday, LSEG data show. (renae.dyer@wsj.com)
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Softer Eurozone Growth Remains Headwind For Euro — Market Talk
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Building evidence over the economic fallout from the energy price shock in the eurozone has put the euro under increased selling pressure, MUFG Bank's Lee Hardman says in a note. Eurozone economic data have been worse than expected on balance since April, encouraging market participants to scale ba…