The euro is having a slight decline towards the end of this week’s session as consumer prices in the region unexpectedly fell, being the sharpest fall in more than a decade, raising speculations that interest rates will remain around record lows in the Eurozone.
The yen is ending the week with a positive performance versus the euro today as negative events marked this Friday financial session in Europe. In Spain, a gross domestic product report indicated a contraction sharper than forecasts for the second quarter, and consumer prices in the Euro area declined 0.7 percent, which lit once again concerns that the economic situation in Europe is far from improving. Despite yesterday’s unexpected growing figures for Germany and France, the euro’s outlook still did not find support to climb to higher levels, since the economic future of the European Union still remains rather mysterious.
Confusing signals provided a high volatility for the euro pairs in foreign-exchange markets this week, as most of forecasts proved themselves false while reports did not confirm their suggestions, traders and economists remain confused regarding the euro outlook, but, at the same time, the situation in other economic regions like North America and Asia is also uncertain, creating highly speculative conditions, where reports influence markets in a very short-term, favoring day traders to profit in the current financial scenario.
EUR/JPY traded at 135.85 as of 11:24 GMT from a previous rate of 137.55 yesterday, being the yen trading positive versus all of 16 most traded currencies this Friday.
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