The Euro declined from its three-week high against the US dollar after Germany’s ZEW indicator came in below expected, reports from the eurozone’s largest economy confirmed on Tuesday.
The 18-bloc currency traded 0.06 higher at $1.3717 against the US dollar at the time of writing, after the euro climbed to a three week-high, climbing to $1.3727.
Germany’s ZEW indicator came in at 55.7 in February, dropping from the previous reading of 61.7 seen in January and compared to analysts forecast of 61.5, marking its first drop in five months.
The ZEW Current Situation gauge came in 50.0 higher in February, picking up from the market consensus of 44.0 and 41.2 seen in the previous month.
The eurozone’s account surplus slightly lessened in December on a seasonally basis, according to reports from the European Central Bank.
Italy trade surplus climbed higher than expected to a non-seasonally adjusted surplus of 3.618 billion euros in December, picking up from the revised figures of 3.088 billion euros recorded in the previous month.
The eurozone’s gross domestic product (GDP) climbed 0.3% higher in the fourth quarter, rising above analysts’ forecasts, strengthened by the growth in France and Netherlands.
According to the German statistics office, the country’s fourth quarter expansion was boosted by the net trade, as exporting climbed higher than expected, while the private consumption slightly declined.
Before the release of the German data, Unicredit stated in a note that an upbeat ZEW reading would boost the euro above $1.37.
The Empire State Manufacturing Survey is forecasted to come in slightly lower than the previous reading of 12.51 seen in January to 9.75 in February. The report is expected to be released later in the day.
Market participants will be expecting housing and inflation reports as well as minutes from the Federal Open Market Committee’s (FOMC) meeting.
The US Federal Reserve released the factory output report on Friday, which revealed a 0.3% contraction, compared to analysts forecast of a 0.2% growth.
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