Euro Drops as Eurozone Economy Shrinks

The euro slipped today after today’s report confirmed that the eurozone economy declined last quarter, bolstering the risk aversion sentiment on the Forex market.
Analysts expected that today’s report would confirm the preliminary estimate that showed the 0.3 percent decline of the eurozone economy (the gross domestic product rose 0.1 percent in the preceding quarter). The report came out and proved forecasters right. Now, traders try to avoid riskier assets (and the euro is currently a very risky asset) and desperately seek a refuge. The dollar and the yen profited from such downbeat mood.
EUR/USD slid from 1.3216 to 1.3118 and EUR/JPY went down from 107.78 to 105.85 as of 16:32 GMT, while the daily low was 105.75 — the lowest since February 22.

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