The Euro moved 1.6% higher against the U.S Dollar last week being one of the top performers out of the G10 currencies. The pair moved from lows 1.1437 and closed the week at 1.1619 – a 2-week high. The primary driver behind the Euro’s strength has been broad US dollar weakness following Trump's criticism last week on the Federal Reserve’s Chairman’s decision over its higher rates policy. Trump is after a lower greenback and believes the dollar is getting far too expensive.
On the data front, the preliminary August Markit PMI for the EU indicated that the economy continued to grow, edging higher from 54.3 in July to 54.4 in August. Consumer confidence fell to -1.9 in August, from -0.5 in July. It was the fourth consecutive monthly decline, taking consumer confidence to its lowest in 15 months.
The economic calendar is quite busy this week with German and EU CPI the most notable. Today we had German Ifo Business Climate change which is based on surveyed manufacturers, builders, wholesalers, services, and retailers. German Ifo survey released higher than the previous 101.7 and forecasts of 102.5 and posted an expansion number of 103.8. The recent momentum in Germany’s Ifo survey suggests further upside to Germany and by extension Euro-area growth momentum during the remainder of the quarter. Market participants are starting to question if the current upside trend will continue, if one starts to factor in trade tensions and Brexit.