Euro had a sharp decline against the US dollar (Credit : REUTERS)

Euro is getting worse, why?

Siti Fatimah Adri
Politics & Economic
Economic
Jul 17, 2019
2045
The decline in the level of confidence in the German economy turned out to have a negative impact on the Euro currency movements. Tuesday night (7/16/2019), Euro had a sharp decline against the US dollar.

Reporting from Refinitiv data, at 20:15 local time, Euro traded on the Spot Market weakened 0.41% or was in the range of US$ 1.1212. This decline is a new pressure for this currency. Previously, the 19 countries currency was burdened by speculation about the dovish of European Central Bank (ECB).

Launching from data released by ZEW Institute, German economic confidence index this month fell to -24.5 compared to previous month at -21.1. For your information, this index uses number 0 as the threshold. So, above 0 means optimistic while below 0 or minus means pessimistic.

According to ZEW Institute, investors are pessimistic about German economy due to the protracted US-China trade war.
Otherwise, United States Dollar (US) releases retail sales data is better than predicted. This makes the US Dollar strengthen against major currencies in trading.

According to Refiniv data, the dollar index was at 97.29 or rose 0.37%. This index, which is a benchmark for US stretched strength, was formed from six currencies, namely euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc.

Source: https://www.cnbcindonesia.com/market/20190716201652-17-85439/keyakinan-ekonomi-jerman-memburuk-euro-kian-terpuruk