The latest news about industrial output in the eurozone is weighing on the euro right now. The 17-nation currency is pulling back against some of its major counterparts, dropping as concerns about the economic growth of the region return.
Eurostat reports that the industrial output for the eurozone during October was 1.1 per cent lower than the output seen in September. This news indicates that the economy might not be doing as well as thought, and that the fledgling recovery might not be sustainable.
The drop was a surprise to most analysts; an increase of 0.2 per cent had been expected. The drop in output was mirrored in individual nations as well. Only Italy and Estonia saw improvements in their data. This official data contradicts a Markit report from earlier, which seemed to indicate that things in the eurozone were improving.
While the ECB kept rates steady for this month, there is no speculation that policymakers will have to turn to “other tools” to support the eurozone’s recovery and to ensure that the euro remains viable going forward.
At 15:03 GMT EUR/USD is lower, dropping to 1.3776 from the open at 1.3786. EUR/GBP is down to 0.8414 from the open at 0.8418. EUR/JPY is up to 141.7465 from the open at 141.1875.
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