Euro is dropping today, falling against its major counterparts as disappointing economic data, along with the political situation in Italy, weigh on the 17-nation currency.
The latest eurozone data isn’t very encouraging right now, with factory growth in the 17-nation currency region slowing overall. In fact, factory data in larger economies, like Germany, is showing slowing as well. And there is slowing in the periphery, which is causing some difficult.
This economic news underlines a slow economic recovery, and concerns that the bloc could slip back into recession.
It doesn’t help that Italy is experiencing difficult at this time, either. Italy’s political turmoil threatens to put the country back in trouble, and it is raising specters of difficulties in the periphery, including problems that persist in Greece. Many are looking toward the upcoming ECB meeting, wondering if the tepid economic recovery will prompt policymakers to cut rates below the current 0.5 per cent level.
For now, euro is down across the board as questions about what’s next are raised, and as risk appetite flees in the face of a US government shutdown.
At 15:03 GMT EUR/USD is down to 1.3526 from the open at 1.3527. EUR/GBP is down to 0.8350 from the open at 0.8357. EUR/JPY is down to 132.7800 from the open at 132.9550.
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