With each new piece of economic news that comes in, the euro struggles a little bit more. The 18-nation currency reached a three-month low against the US dollar, and continues to have difficulty against many of its other major counterparts.
The latest news out of Germany is weighing on the euro, sending it lower against many of its major counterparts, including resulting in a three-month low against the US dollar. The Ifo index hit its lowest level of the year for May, indicating that slower growth continues to be a problem. And, even with its slower growth, Germany is still the driver of eurozone growth. This is causing problems for the euro, which has been struggling against returning to recession in the currency region for months.
Also not helping the situation is the fact that there are European Union election results coming at the weekend. There is some speculation that some of the governments in the 18-nation currency zone could be destabilized by the outcomes. With all the uncertainty, it’s no surprise that the euro is struggling, especially in light of expectations for further easing by the ECB next month.
At 14:14 GMT EUR/USD is down to 1.3637 from the open at 1.3656. EUR/GBP is down to 0.8094 from the open at 0.8095. EUR/JPY is down to 138.9050 from the open at 138.9300.
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