Stories tagged “Eurozone.”
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Stock market professionals are increasingly optimistic about the Eurozone economy, with the Sentix sentiment barometer rising for the fourth consecutive month to its highest level since February.
Eurozone yields pause after sharp July sell-off
Eurozone government bond yields traded in a narrow range on Tuesday, with benchmark borrowing costs stabilizing as fixed-income desks paused following a volatile end to July and prepared for incoming economic releases later in the week.
The Eurozone PMI rose from 50.0 to 51.9 in July, but the escalating conflict in the Middle East casts doubt on hopes of a meaningful acceleration in growth.
The ECB meeting did not move rates, but oil prices remain elevated, driving euro rates and second-round inflation effects.
Lower oil prices have eased inflation pressures in the eurozone, reducing the need for aggressive European Central Bank rate hikes, though a September hike remains possible if core inflation stays high.
Citi sets EUR/JPY fair value amid intervention impact
Citi estimates the EUR/JPY exchange rate at approximately ¥184 per euro for the 2017-2025 period. The currency pair shows no notable price distortion at present, though Japanese government yen-buying interventions may have left it somewhat undervalued.
Eurozone GDP fell 0.2% in Q1 after a sharp drop in Ireland reversed earlier gains. Germany still posted 0.3% growth, according to Eurostat.