The euro showed resilience, maintaining a position above $1.11 after a significant decline the previous day. This stability occurred amidst conflicting signals from German economic sentiment, which showed unexpected strength, and a surprising deceleration in US inflation. Investors are actively processing these varying economic indicators and the implications of recent trade developments between the US and China.
- The euro held firm above the $1.11 mark.
- Germany’s ZEW Economic Sentiment Index for May significantly exceeded expectations, jumping to 25.2.
- US consumer price inflation eased to 2.3% in April, below expectations.
- Core US inflation held steady at 2.8% year-over-year, matching a four-year low.
- The US-China tariff rollback temporarily reduces tariffs to 30% and 10% for a 90-day period.
These factors suggest a complex interplay of forces influencing the asset’s valuation. Positive economic sentiment in Germany appears to be providing some support, while weaker-than-expected US inflation data could be exerting downward pressure. The ongoing assessment of the US-China trade situation introduces an additional layer of uncertainty, contributing to the asset’s fluctuating value.