EURUSD slumped even lower. Overview for 26.05.2023

The market's most traded currency pair fell even lower on Friday. The current EURUSD quote is 1.0730.

Investors are gradually withdrawing from risks without constructive news on the US government debt. The debate between Democrats and Republicans continues. Under these circumstances, the US dollar is in demand as a defensive asset.

News from Germany is also playing against the euro. Europe's biggest economy has fallen into recession: production volume fell by 0.3% in the first quarter after a 0.5% decline in the fourth quarter of 2022. Statistics show that the earlier skyrocketing energy prices had a negative effect on consumer spending.

At the same time, the Federal Statistical Office of Germany lowered its GDP estimate for the start of the year to zero.

The statistics commentary notes that continuing price rises were a heavy burden for the German economy at the start of 2023. This is reflected in household spending, which dropped 1.2% in the January to March period.

Such signals indicate that the European economy is in a difficult position despite all attempts to stabilise the situation. Price pressures are extremely high, and this is a negative factor for the euro.

Source: RoboForex


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