Euro is heading lower today, dropping as the latest economic news out of Germany weighs on the 17-nation currency. It’s also not helping that Spain continues to be a source of concern.
German data is causing disappointment today. The latest PMI data for Germany is lower than expected, and the latest Ifo survey is weaker as well. Germany represents that regional powerhouse, and the euro relies heavily on good performance out of Germany. With a weak Germany, the entire eurozone could be headed for recession and that is weighing on the euro.
The situation in Spain is also weighing on the 17-nation currency. The country still has not officially asked for aid, and there are worries that the longer Spain puts it off, the worse it will be. However, Prime Minister Mariano Rajoy continues to hold out.
And, of course, there are still disagreements between Germany and the ECB about what should happen with the eurozone, and with countries struggling with sovereign debt problems. ECB President Mario Draghi is trying to charm Germany into agreeing with other eurozone leaders, but the outcome is far from certain.
At 13:18 GMT EUR/USD is down to 1.2979 from the open at 1.2987. EUR/GBP is down to 0.8090 from the open at 0.8141. EUR/JPY is down to 103.5970 from the open at 103.7025.
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