Euro Loses Ground Following Construction Data

Euro is losing ground today, falling almost across the board against its major counterparts, as the latest economic data disappoints. This time, it’s the construction data weighing on the 18-nation currency.

Euro is heading lower against the other majors today, thanks in large part to the latest construction data. Eurostat reports that construction output fell by 0.6 per cent from October to November. The year over year decline was 1.7 per cent. This followed on the heels of drops in September and October.
This news has many worried about deflation in the eurozone. Analysts and others are starting to worry that there are too many economic hurdles right now to sustain the eurozone’s budding economic recovery. On top of that, the periphery countries struggling to exit their bailouts also have a long way to go.
Some of the disappointing data was balance by better news in other areas, such as industrial production, but there are still enough worries that the euro is struggling today, and enough worries that it might continue to struggle if things don’t pick up.
At 14:25 GMT EUR/USD is down to 1.3573 from the open at 1.3619. EUR/GBP is down to 0.8255 from the open at 0.8327. EUR/JPY is down to 141.6150 from the open at 142.0760.

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