Euro Drops as Europe’s Economic Growth Slows

The euro snapped its three-day rally today after the macroeconomic data showed Europe’s economic growth is slowing, intensifying concerns about the impact of the debt crisis on the Eurozone economy.

The German GDP, according to the preliminary report, grew just 0.1 percent in the second quarter of 2011, compared to the 1.3 percent growth in the first quarter of this year. The Eurozone GDP expanded 0.2 percent in Q2 2011, following the increase by 0.8 percent in Q1. The trade balance deficit of the euro area widened to â‚¬1.6 billion in June from €0.8 billion in May (seasonally adjusted), while a surplus of â‚¬0.3 billion was expected.

EUR/USD dropped from 1.4442 to 1.4365 and EUR/CHF fell from 1.1337 to 1.1218 as of 11:33 GMT today.

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