The euro followed up its worst quarter on record with a tiny gain, helped by more signs of recovery taking hold in the 19-country bloc. Western Union research notes:
- Growth in the euro zone’s manufacturing sector proved the strongest in 10 months in March as the key purchasing managers’ index got upgraded to 52.2 from an initial print of 51.9.
- The upbeat news followed reports this week that showed the rosiest economic sentiment in years and incremental improvement in inflation and unemployment.
- Growing signs of recovery suggest the weak euro is starting to translate into better business for the region’s exporters, a vital growth engine.
- Still, the region faces a stiff economic headwind in Greece’s unresolved debt situation which keeps uncertainty high and a general lid on consumer and business confidence.
- The euro could be subject to increased volatility with much of Europe closed Friday and Monday for the Easter holiday.
The material has been provided by InstaForex Company – www.instaforex.com