Euro Logs Massive Drop on Tuesday

The euro demonstrated massive losses on Tuesday with not-so-good economic data, the continuing problems in Greece and the economic stimulus from the European Central Bank. The shared 19-nation currency was set to have its worst quarter in the history.

The reasons for the euro’s drop were largely the same as yesterday — the debt woes of Greece and the quantitative easing program of the ECB. Unlike the previous session though, the euro sank against all its rivals, not just the dollar, during the current trading session.

As for macroeconomic indicators, they were not actually that bad though not good either strictly speaking. Eurostat reported that the eurozone remained in deflation in March, but the rate of the prices’ decline slowed. The eurozone unemployment rate was at 11.3 percent in February, slightly above the analysts’ projections, but it was still the lowest level since May 2012. The unemployment rate for the whole European Union was at 9.8 percent — the lowest since September 2011.

EUR/USD dropped from 1.0832 to 1.0736 as of 22:04 GMT today. EUR/GBP tumbled from 0.7315 to 0.7241. EUR/JPY dipped from 130.10 to 128.86.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *