The euro fell today as the reports signaled that the European economic recovery may be slowing, diminishing the attractiveness of the shared 16-nation currency to the investors.
The French Services PMI was at 58.8 this month, down from 60.4 in August and below the market expectations of 60.1. The German Services PMI declined from 57.2 in August to 54.6 in September. The forecasts promised it to remain at the same level. German Manufacturing PMI declined to 55.3 in September from 58.2 last month, while the analysts expected the decline to only 57.7.
Other countries, especially those with high budget deficit like Spain, also cause concerns. Elena Salgado, Spain’s Minister of Economy and Finance, were trying to reassure the investors that the planned spending cuts would be enough to deal with the nation’s budget deficit. The budget scheduled to be approved today, the budget cuts expected to biggest in 30 years.
EUR/USD fell from 1.3404 to 1.3314 and trades at 1.3327 as of 1:27. EUR/JPY dropped from 113.25 to 112.33 and is now trading near 112.64.
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