The week’s big news was that Germany slipped into recession in 2023’s first quarter. It’s by far the Eurozone’s largest national economy, and usually among its most successful, so naturally this news has weighed on sentiment toward the single currency. Germany has had to deal with rising inflation and a reduction in its massive use of Russian energy, a consequence of the war in Ukraine.
The ‘USD’ side of EUR/USD has been supported by rising hopes that Congress will come to heel and pass an increase in the Federal debt ceiling before the end of this month. Treasury Secretary Janet Yellen has warned that Washington will be out of cash by June 1 if it can’t.