The euro continued to slide against its most-traded peers as concerns about the potential Brexit and economic stagnation in the eurozone undermined the strength of the currency. As one could expect, the shared 19-nation currency fared better that the Great Britain pound that has been the weakest major currency this week so far.
Brexit fears are on the rise despite the recent deal between the United Kingdom and the European Union to secure a special status of the UK in the EU. Obviously, such fears are especially hurtful to the pound. Yet the euro was not immune as Britain’s exit from the EU would create a precedent that may result in the union falling apart which in turn would lead to a breakup of the eurozone.
Adding to the woes of the euro, the Ifo Business Climate Index for Germany fell to 105.7 in February from 107.3 points in January while experts had predicted just a very small drop. The report stated:
The majority of companies were pessimistic about their business outlook for the first time in over six months.
EUR/USD dropped from 1.1110 to 1.1020 as of 23:14 GMT today. EUR/JPY declined from 124.49 to 123.44, trading near the lowest level since April 2013. At the same time, EUR/GBP climbed from 0.7793 to 0.7856.
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