Euro is losing ground today, thanks to more disappointing economic data out of Germany, and across the eurozone. Euro is down against all of its major counterparts due to concerns about the faltering German economy, and its affect on the rest of the eurozone.
Last week, the president of the Bundesbank in Germany said that the ECB rate was at an appropriate level, and that there was no reason to change the situation unless economic data was bad enough to require a rate cut to stimulate the economy.
With all of the economic data coming in — and disappointing Forex traders — it appears that it might be time for a eurozone rate cut. The latest data deals with business activity. The purchasing managers index is showing a decline in private sector activity in Germany, as well as in the wider eurozone.
After the release of this news, there is speculation that things are deteriorating enough that the ECB will have no choice but to cut rates in an effort to help get the eurozone economy going again. The prospect of this easing is weighing on the euro.
At 13:46 GMT EUR/USD is down to 1.2993 from the open at 1.2996. EUR/GBP is down to 0.8511 from the open at 0.8529. EUR/JPY is down to 129.2605 from the open at 129.2860.
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