The euro was relatively strong at the start of the week, but speculators are concerned that this week’s fundamental reports may hurt the currency, showing slowing economic growth.
The beginning of the week was good from the macroeconomic point of view as Italian industrial production grew 0.2 percent in September following the 0.2 percent decline in August. Still, other reports released this week are not expected to be as good. Most importantly, gross domestic product figures for major European economies as well as for the whole eurozone are expected to show slowing growth.
Poor economic data may encourage the European Central Bank to keep its monetary policy accommodative or even implement additional stimulating measures. Last week, the ECB surprised the Forex market as it unexpectedly cut interest rates.
EUR/USD traded at 1.3389 as of 2:17 GMT today after rising from 1.3354 to 1.3404 yesterday. EUR/JPY advanced from 132.91 to 133.29 on the current trading session. EUR/GBP jumped from 0.8343 to 0.8383 on the yesterday’s session and remained near this level today.
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