Euro is mostly lower today, losing ground as the latest PMI data weighs on the 18-nation currency, and as risk aversion sets in. Concerns about China’s recently released — and disappointing — data are weighing on sentiment, and it’s not helping that gold is pulling back as well. Add to the worries about the eurozone in general, and it’s no surprise the euro is struggling.
Once again, disappointing data is front and center. Economic recoveries around the world aren’t going as well as expected, and that is weighing on high beta currencies like the euro.
The latest eurozone PMI data from Markit shows a drop to 52.7 in February from the 52.9 in January. While the eurozone economy is still in expansion mode, there are worries that the growth could be slowing, and that it could mean trouble down the road. ECB policymakers have already said they are keeping options open, and continued difficulties with the eurozone recovery could prompt easing.
Also weighing on the euro — and other high beta currencies — is the fact that data out of China is also disappointing. The US data is also a bit disheartening. The idea of global slowing is definitely having an impact.
At 15:16 GMT EUR/USD is down to 1.3716 from the open at 1.3732. EUR/GBP is down to 0.2831 from the open at 0.231. EUR/JPY is down to 140.3180 from the open at 140.4060.
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