Euro stalls amid weakening German growth and investor concerns

Rabobank says the euro has lost its recent momentum as the eurozone faces weaker growth forecasts, higher energy prices tied to the Iran war and a slowdown in Germany, the bloc’s biggest economy. The bank expects the euro to trade sideways against the dollar for the next one to three months, with only modest upside possible after six months. It also notes that anticipated ECB rate hikes are already priced in, limiting any near‑term boost.

German investment envoy Martin Blessing warned that debates over left‑wing property reforms and potential expropriations are unsettling foreign investors more than the rise of the AfD. He said investors remain confident in Germany’s overall stability but are sensitive to any moves that could restrict ownership rights. Blessing cited other European examples, such as Austria, where right‑wing parties have not harmed the economic climate.