Euro is struggling today as the latest economic data indicates that the situation is still mostly static in the eurozone. The 18-nation currency region continues to fight with unemployment, and the inflation level remains too low for comfort.
The latest economic reports from Eurostat indicate that the eurozone economy remains mired in the doldrums. Unemployment remains at 12 per cent — where it’s been since October of 2013. On top of that, the latest inflation rate, for the month of January, was 0.7 per cent, which was lower than the 0.8 per cent seen in December, and lower than estimates.
With this news, many expect the European Central Bank to take measures to boost the economy. Stimulus, in the form of another interest rate cut (like what was seen in late 2013), or in some other form, is increasingly likely. Officials don’t want to see deflation, and they certainly don’t want to slip back into recession.
As a result of the expectations for more monetary easing, and concerns about the eurozone economy, it is little surprise that the euro is struggling against its major counterparts today.
At 14:03 GMT EUR/USD is down to 1.3516 from the open at 1.3548. EUR/GBP is down to 0.8203 from the open at 0.8223. EUR/JPY is down to 138.2385 form the open at 139.2050.
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