Euro is heading lower today, dropping on worries that the eurozone recession might not be coming to an end. Thanks to the latest manufacturing survey, concerns about the economic state of the 17-nation currency region are on the rise. It’s not helping that uncertainty is emerging in other areas as well.
Even though many of the fears regarding the eurozone have been assuaged with the idea that the worst is over, there are still hurdles to clear. And it appears that one of those hurdles is the 17-nation currency region’s economy. There had been hopes that the latest Eurozone Services PMI from Markit would show signs of economic recovery. However, those hopes were dashed when the indicator fell from 48.6 in January to 47.3 in February. Analysts had expected to see an increase to 49.0.
The news provides a setback to those who have been hoping for economic improvement in the eurozone. The news comes just before the European Commission releases its own economic forecasts. The manufacturing news has many concerned about what will be revealed in the upcoming report. As a result, the euro is lower in forex trading, and risk appetite is hard to find.
At 17:36 GMT EUR/USD is down to 1.3196 from the open at 1.3282. EUR/GBP is down to 0.8652 from the open at 0.8717/ EUR/JPY is down to 122.5050 from the open at 124.2700.
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