The euro is in the process of challenging significant thresholds in relation to certain currencies, as the release of Euro area GDP data (scheduled for later today) and the forthcoming FOMC minutes (slated for Thursday) approach.
It is anticipated that economic expansion within the Euro area likely decelerated to a rate of 0.6% on a year-on-year basis during the April-June quarter, in contrast to the 1.1% growth observed in the preceding quarter. This moderation can be attributed to more restrictive credit conditions, stemming from the spillover effects of the aggressive rate hikes executed by the ECB. The lackluster macroeconomic data aligns with the Euro area Economic Surprise Index (ESI), which currently hovers just slightly above its lowest point in the past three years.