Euro is slipping today, heading lower as data indicates that the eurozone most likely slipped into recession during the third quarter. Also weighing on the euro is the continued efforts by Spain to put of the inevitable before it finally asks for aid.
Once again, business activity and new orders in the eurozone appeared to decline. The composite index from Markit Economics showed that September came in at 46.1, which is down from what it was in March, at 46.3. The news indicates another quarter of slowing for the eurozone, and may mean that the 17-nation currency bloc is in recession.
It’s also not helping matters that Spain continues to insist, through Prime Minister Mariano Rajoy, that it doesn’t need bailout funds right now. Many believe that Spain is putting off the inevitable, and the longer the country waits to ask for help from the ESM, the worse things will be.
In the meantime, discontent is growing again in Greece as deadlock with the Troika remains a sticking point — especially since wage cuts and a higher retirement age are being considered. All this uncertainty is sending the euro lower for now.
At 13:05 GMT EUR/USD is down to 1.2892 from the open at 1.2919. EUR/GBP is up to 0.8012 from the open at 0.8008. EUR/JPY is up to 101.1650 from the open at 100.9750.
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