The euro rebounds from Thursday’s losses as traders overlook geopolitical risks and disappointing German industrial output and trade figures.
The euro (EUR) rose modestly against the US dollar (USD) on Friday, nearing 1.1750 after retreating the previous session. Gains came despite heightened US-Iran tensions and softer-than-expected German economic data, though the currency stayed below the 1.1800 mark.
German industrial production fell for a second straight month in March, missing forecasts for a rebound. The trade balance also narrowed more than expected, as a surprise rise in exports was offset by a sharp increase in imports. Risk sentiment weakened after reports of clashes in the Strait of Hormuz, though US and Iranian officials signaled ongoing ceasefire talks.
Attention now turns to April’s US nonfarm payrolls report, with economists expecting a slowdown in job growth. The data could influence Federal Reserve policy expectations amid growing divisions within the committee.