Tuesday saw the common currency of the European Union slide against most of its rivals after having spiked higher following the release of favorable economic data from the bloc's largest economy, Reuters reports.
The losses were linked with preoccupations about elections scheduled for Sunday and Monday in Italy, host of the euro zone's third-largest economy. But in Germany, the largest economy of the region, the ZEW index revealed this month is seeing a third-consecutive month of increases for analyst and investor sentiment.
"The euro did not sustain the upward movement after the ZEW data because the current conditions index was a disappointment … if current conditions are deteriorating then that is not good enough for euro/dollar to rally," FX strategist Peter Frank with BBVA told Reuters on Tuesday.
February saw the German index surge to its top level in nearly three years, which provided a bounce to the 17-nation monetary unit.
The financial and economic outlook for Germany is forecast to be on the rise as a result of the strong returns of the ZEW, according to The Wall Street Journal.
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