The euro displayed resilience, recovering from earlier dips and hovering near the $1.14 threshold. This stability occurred as investors considered contrasting economic indicators originating from the United States and the Eurozone. While the U.S. experienced an unexpected economic contraction, the Eurozone showed stronger-than-anticipated growth, further influencing market sentiment toward the euro.
- The euro recovered from earlier losses but remained just below $1.14.
- The U.S. economy contracted by 0.3% in Q1 2025.
- The Eurozone economy grew by 0.4%, exceeding expectations.
- Germany’s economy expanded by 0.2%, as forecast.
- France’s economy grew by a modest 0.1%.
- German headline inflation eased to 2.1% in April, but core pressures increased.
- France’s annual inflation rate held steady at 0.8%.
- The euro remained on track for a monthly gain of over 5% against the dollar.
- Uncertainty over U.S. trade policy continues to undermine confidence in American assets.
The performance of the euro seems tied to the relative economic health of the Eurozone compared to the U.S., as well as broader market confidence in the dollar. Positive economic data from the Eurozone strengthens the currency, while concerns about U.S. economic performance and trade policy create further opportunity for gains. The contrasting economic landscapes could support continued, though potentially volatile, strength for the euro.