FX Brief EUR Lower as Investor Pessimism Grows
A summary of news and snapshot of moves ahead of the US session.
Share this:
- FX volumes have remained lower than usual with no major US data scheduled for release in the afternoon. FWIW, the AUD was the strongest and EUR the weakest at the time of writing, with the latter hurt by growing investor pessimism. Equities were mostly lower as Friday’s strong NFP reduced expectations of the Fed cutting by 50bpslater this month.
- In EM FX news, (1) Trump again claimed China is devaluing its currency whilst speaking with reporters and (2) the Turkish lira has dropped amid renewed concerns that President Recep Tayyip Erdogan is ruining the nation’s economy, just as inflation was starting to ease back, with his decision to replace the Turkish Central Bank’s Governor over the weekend.
- Sentix Investor Confidence deteriorated to -5.8 from -3.3 last month, disappointing forecasts of an improvement to +0.3. A reading below zero points to pessimism while above means optimism. Investors have therefore grown increasingly pessimistic about the relative 6-month economic outlook for the Eurozone. However, there was some good news from Germany, for a change. German exports were up 1.1% in May after dropping 3.4% in April, while industrial production rose 0.3% after a 2% fall in April. Both figures were roughly in line with economists' forecasts. This follows data on Friday showing factory orders in Europe's biggest economy dropped 2.2% in May.
- FX volumes have remained lower than usual with no major US data scheduled for release in the afternoon. FWIW, the AUD was the strongest and EUR the weakest at the time of writing, with the latter hurt by growing investor pessimism. Equities were mostly lower as Friday’s strong NFP reduced expectations of the Fed cutting by 50bpslater this month.
- In EM FX news, (1) Trump again claimed China is devaluing its currency whilst speaking with reporters and (2) the Turkish lira has dropped amid renewed concerns that President Recep Tayyip Erdogan is ruining the nation’s economy, just as inflation was starting to ease back, with his decision to replace the Turkish Central Bank’s Governor over the weekend.
- Sentix Investor Confidence deteriorated to -5.8 from -3.3 last month, disappointing forecasts of an improvement to +0.3. A reading below zero points to pessimism while above means optimism. Investors have therefore grown increasingly pessimistic about the relative 6-month economic outlook for the Eurozone. However, there was some good news from Germany, for a change. German exports were up 1.1% in May after dropping 3.4% in April, while industrial production rose 0.3% after a 2% fall in April. Both figures were roughly in line with economists' forecasts. This follows data on Friday showing factory orders in Europe's biggest economy dropped 2.2% in May.
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Australian Dollar Technical Outlook: AUD/USD Breakdown Threatens Deeper Correction 9 23 2026
AUD/USD remains under pressure after breaking key trend support, with the latest decline putting the focus on the next major downside pivot.
USD/JPY forecast: US dollar strengths amid hawkish Fed despite recent oil weakness
The US dollar has extended its gains this morning, even if oil prices finished lower for the fifth consecutive day yesterday. Oil prices have bounced back in this first half of today’s session, causing a bit of pressure on currencies that rely on energy imports such as the euro, pound, Swiss franc, and Japanese yen. But it was the dollar that was exerting the most pressure, amid hawkish FedSpeak. Meanwhile, European indices and precious metals were also under a bit of pressure amid the strength of the dollar.
EUR/AUD, GBP/AUD Outlook: Rates, risk and metals reinforce bearish technical case
EUR/AUD and GBP/AUD are coiling near support, with recent correlations suggesting the Aussie’s strength is being driven more by rates, risk and metals than energy.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.