Euro is dragging today, heading lower as slower growth in the eurozone hurts performance. The German data was disappointing, and as was a PMI reading for the entire eurozone. With the dollar firming, thanks to the latest out of the Federal Reserve, it’s no surprise that the euro is struggling.
A release of preliminary PMI data for March indicates that the eurozone’s reading has slipped from a 32-month high. Even though the eurozone remains in expansion territory, the reality is that things could slip out of that territory fairly easily — and that has some worried.
Additionally, even though data from France is better than expected, things in Germany didn’t go as well as hoped. With the German private sector slowing in March, there are concerns about the entire eurozone because Germany is the largest and most influential economy in the 18-nation currency region.
Euro has received some small support from the indications that the ECB isn’t ready to loosen monetary policy further, but that might change if the recovery continues to move at this slow pace.
At 13:08 GMT EUR/USD is down to 1.3777 from the open at 1.3798 and far from the session high of 1.3828. EUR/GBP is down to 0.8352 from the open at 0.8382. EUR/CAD is down to 1.5453 from the open at 1.5466.
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