The euro maintained its losses today after European Central Bank President Mario Draghi followed the International Monetary Fund in pessimistic outlook for Europe’s economy. On top of that, the French trade balance deficit was bigger than expected.
Draghi said today in Brussels:
Looking ahead, we expect weak economic activity in the near term and only a very gradual recovery after that. The risks to this outlook are on the downside, mainly related to the tensions in several euro area financial markets.
The statement hurt the market sentiment that was already negative after the IMF projections. France’s trade balance posted a deficit of â¬5.3 billion in August, which was bigger than predicted by analysts.
EUR/USD fell from 1.2966 to 1.2909 and EUR/JPY dropped from 101.56 to 101.10 as of 13:40 GMT today.
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