Yahoo Finance Euro Slips as Trade Conflict Fears Hit German Economic Outlook
Investing.com - The euro slid to the day’s lows on Tuesday after data showing that German economic sentiment deteriorated sharply in March amid concerns over the prospect of a U.S. - led trade conflict.
EUR/USD was down 0.22% at 1.2309 by 06:14 AM ET (10:14AM GMT) from around 1.2349 earlier.
The euro weakened after a report showing that the ZEW indicator of economic sentiment for Germany fell by 12.7 points to a reading of 5.1 this month, amid fears that a possible trade war with the U.S. could have a negative impact on the outlook for the euro area economy.
Concerns over a trade war have been mounting after U.S. President Trump imposed tariffs on U.S. steel and aluminum imports earlier this month, which are due to come into effect on Friday.
The Trump administration is also expected to unveil up to $60 billion in new tariffs on Chinese imports by Friday.
The euro was lower against the pound, with EUR/GBP down 0.24% to 0.8775.
The single currency pared back gains against the yen, with EUR/JPY last at 130.99, off an earlier high of 131.70.
The single currency had risen in the previous session amid renewed expectations that the European Central Bank will wind down its stimulus program later this year and start to raise interest rates around the middle of next year.
The euro had been boosted after Reuters reported Monday that ECB policymakers are shifting the focus of their debates from bond purchases to the future path of interest rates.
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