Euro is dropping against the US dollar today, and struggling against other counterparts. The European Commission released a report about the eurozone economy, and the euro’s performance today is at least partially influenced by it.
According to the European Commission, the eurozone can expect to lag behind the United States and China for the rest of 2014, and during 2015. Even though there are signs of an improving economy, the eurozone is still struggling, especially in terms of employment. The European Commission expects to see GDP increase by 1.2 per cent in 2014. This represents an improvement over previous forecasts, but it’s still not great — and government debt in the eurozone is still on the rise.
The news has sent the euro into negative territory against the US dollar. Earlier, with concerns about the US economy rising to the top again, the euro was gaining ground, but that’s over now. The 18-nation currency is struggling against the pound and the yen. There just isn’t enough good news — even with the improvements seen in Germany — to give the euro a lasting boost against some of its counterparts.
At 15:15 GMT EUR/USD is down to 1.3724 from the open at 1.3733. EUR/GBP is down to 0.8237 from the open at 0.8245. EUR/JPY is down to 140.2215 from the open at 140.7055.
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