Euro: Mixed macro backdrop with weak Germany – BNY

BNY’s Bob Savage flags that Euro area Sentix sentiment remains in downturn territory, with Germany still classified in recession despite modest improvement. German manufacturing orders fell sharply in April, driven by autos and machinery, even as sales showed some resilience. Spain’s housing prices remain strong, while EUR/USD is little changed, reflecting offsetting regional dynamics.

Soft German data offset by Spanish housing

"Germany’s Sentix investor confidence index for June 2026 showed that sentiment remained weak despite a second monthly improvement in the euro area."

"The report still classed the euro area as in downturn and Germany in recession."

"Germany’s manufacturing orders in April 2026 fell 3.8% m/m on a real, seasonally and calendar adjusted basis, while rising 1.6% from a year earlier, according to Destatis."

"Spain’s housing price index for Q1 2026 rose 12.9% y/y, unchanged from the previous quarter, according to the National Statistics Institute."

"Prices increased in every autonomous community and city, led by Aragon and Murcia at 15.6%, while Catalonia, Navarra and the Basque Country posted the smallest gains."

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