The euro rose Intraday, boosted by good domestic macroeconomic data. Despite that, the currency has been retreating during the time of writing, trimming gains against some of its rivals and losing them outright versus others.

The French Consumer Price Index, reported by the INSEE, was flat in February, month-on-month, according to the final estimate after rising by 0.2% in January. Market participants were expecting the same 0.1% decline as in the preliminary report. Year-on-year, the CPI rose by 0.6%.

The ZEW Indicator of Economic Sentiment for Germany climbed to 76.6 in March from 71.2 in February. That is compared with the median forecast of 74.0. The assessment of the economic situation improved to 61.0 from 54.8. ZEW President Professor Achim Wambach commented on the positive result:

Economic optimism continues to rise. Experts expect a broad-based recovery of the German economy. They anticipate that at least 70 per cent of the German population will be offered a vaccine against Covid-19 by autumn. However, a large majority also expects inflation to continue to grow, as well as higher long-term interest rates.

Indicators for the whole eurozone improved as well, with the economic sentiment rising to 74.0 from 69.9. The actual value beat the analysts’ consensus estimate of 72.0. The indicator for the current economic situation climbed to -69.8 from -74.6.

Despite the positive data, there were a number of negative factors weighing on the euro. The dovish stance of the European Central Bank was one of them. Another one was tightening coronavirus-related restrictions in the eurozone and slow progress in vaccination. The pace of inoculation rollout should become even slower as one after other European countries have been suspending the usage of AstraZeneca vaccine due to adverse reaction of some patients to the shot.

EUR/USD was up from 1.1927 to 1.1952 intraday but has backed off to 1.1925 by 13:10 GMT today. EUR/JPY fell from the opening level of 130.17 to 129.90 after rising to the high of 130.40 intraday. EUR/GBP was up from 0.8578 to 0.8595 but retreated from the session maximum of 0.8639.

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Post tags: COVID-19 Vaccine, CPI, Economic Sentiment, EUR/GBP, EUR/JPY, EUR/USD, Eurozone, France, Germany, ZEW

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