Euro Weakens as Weber Suggests EU Economy Needs Help

The euro slumped today after Axel Weber, the President of the Deutsche Bundesbank and Member of the Governing Council of the European Central Bank, suggested that the European Central Bank would be required to aid European Union’s struggling economy by the end of this year.
Weber said that:

Most of these discussions about the continuation of the exit I think will be focused on the first quarter. It’s clear that we need to re-embark on a normalization procedure.

The economists predict that the reports next week would show the slower growth of the Japanese exports and the worsening of the German business sentiment. The Stoxx Europe 600 Index tumbled 1.5 percent and the Standard & Poor’s 500 Index slid 0.6 percent.
As Weber said: “We are in year four of the crisis and markets are still fragile.” Yet he allowed some optimism in his words: “But let’s not exaggerate, we’re not facing major problems. The recovery is going to stay on track. All in all, the picture looks much brighter than it did a year ago.”
EUR/USD slumped from 1.2821 to 1.2684 today as of 16:02 GMT, while EUR/JPY tumbled from 109.48 to 108.66 after reaching the daily low of 108.25.

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