The latest economic data out of the eurozone is somewhat disappointing — and indicative of continued economic malaise in the 17-nation currency region. Concerns are rising about what’s next for the euro, and there is speculation that the ECB will have to cut rates, even though an official just recently indicated that wasn’t a preferred option. The euro is down as a result.
The European Union‘s statistics office has released the latest inflation data, and it shows a drop of 0.7 per cent year over year in October. Not only that, but the joblessness rate remains stubbornly high right now. Without indications that the economy is truly offering a sustainable recovery, the eurozone continues to struggle.
As a result, the ECB may have no choice but to encourage stimulus with a loose monetary policy. The ECB may have to cut rates, even though an official recently indicated that policymakers were running out of tools to encourage economic expansion.
On the news, and the resulting expectations of a rate cut from the ECB, the euro is lower pretty much across the board today.
At 12:37 GMT EUR/USD is down to 1.3645 from the open at 1.3736. EUR/GBP is down to 0.8503 from the open at 0.8564. EUR/JPY is down to 134.0830 from the open at 135.3150.
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