The 18-nation currency traded slightly lower on Tuesday, after reports showed that the eurozone’s number one economy worsened for the fourth consecutive month, as tensions from Ukraine and the stronger greenback continue to weigh on the euro.
Germany’s ZEW Index, which shows the investor sentiment for the next six months, worsened for the fourth month in a row to 43.2 in April, dropping from the previous figure of 46.6 points seen in March. The current situation index climbed to 59.5 points, compared to 51.3 seen in the previous month.
The euro edged 0.14% lower at the time of writing to $1.3799 after the release of the German ZEW index on Tuesday.
The European Central Bank (ECB) president Mario Draghi also intervened against the euro over the weekend that “the strengthening of the exchange rate would require further monetary policy accommodation.”
Last week, the euro strengthened 1.33% against the US dollar, until the ECB President Mario Draghi intervened. On Friday, the 18-nation currency reached $1.3904.
The euro is getting pressured by the ongoing conflict between Russia and Ukraine, after tensions between the countries escalated over the weekend, adding concerns that Ukraine could get into an extended civil war.
Euro – Fed Speeches
This week, investors will be focusing on the Federal Open Market Committee members’ speeches which are scheduled to hold through the week.
The Federal representatives that are expected to give speeches this week include Philadelphia Fed President Charles Plosser in Stone Mountain on Tuesday, Fed Governor Daniel Tarullo at the New York Stock Exchange on Monday and Minneapolis Fed President Narayana Kocherlakota at the Town Hall Forum on Wednesday.
Federal Reserve Chair Janet Yellen is also expected to speak on Wednesday at the 2014 Financial Markets Conference in Stone Mountain and on Thursday she will attend the Economic Club of New York.
Investors will be focusing on the Yellen’s upcoming talks for any hints and additional information emphasizing her previous comments on the timing of when interest rate could possibly increase.
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