Euro’s latest economic data was better than expected, but that doesn’t seem to be solving the 18-nation currency’s problems right now. Euro is still struggling in Forex trading, with many thinking that issues in Ukraine represent a risk to the eurozone economy.
The latest PMI data and retail sales information paint a somewhat promising picture of improvement for the eurozone. However, even with this new data, there are concerns about what’s next. There is pressure on the ECB to stimulate growth, and events in Ukraine’s Crimea are causing a bit of worry over impacts to the eurozone.
Markit reports that the eurozone’s PMI rose to 53.3 during February, representing an improvement from 52.9 the previous month. Additionally, the retail sales figure for January included an increase of 1.6 per cent from December. This news is encouraging, but not encouraging enough. Inflation remains low, and the ECB is under pressure to take steps to boost growth and inflation, so a rate cut could still be coming.
Another worry for the euro is the continued trouble in Ukraine. Some tensions are easing, but there are still concerns about the impact if the energy resources from Ukraine stop coming to the eurozone.
At 13:54 GMT EUR/USD is down to 1.3718 from the open at 1.3738. EUR/GBP is down to 0.8210 from the open at 0.8241. EUR/JPY is up to 140.6255 from the open at 140.4975.
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