BNY’s Bob Savage reports that European Union (EU) exports, especially to the United States (US), have weakened sharply and sentiment indicators remain below long‑run averages, underscoring subdued Eurozone momentum. Savage notes that softer producer prices in France, mixed confidence in Italy and Sweden, and broad EUR/USD declines reflect persistent concerns over demand and inflation dynamics across the bloc.

Soft data backdrop for Euro

"EU external trade data for Q1 showed a marked weakening in exports, particularly to the U.S."

"The EU and euro area sentiment surveys for May showed economic confidence remaining weak despite modest stabilization."

"However, both measures remained well below their long-run averages of 100, signaling continued subdued economic momentum."

"These figures are still below pre-Middle East conflict levels and highlight persistent concerns among households and businesses."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)