Euro Plunges as Economic Growth of Europe Disappoints

The euro plunged today as economic growth in major European countries (with the notable exception of Germany) and the eurozone as a whole missed estimates, increasing chances for additional monetary stimulus in June. Inflation remained stable, suggesting that there is no threat of deflation for a time being. The currency trimmed its losses against some of its peers by now.
Eurozone gross domestic product expanded 0.2 percent in the first quarter of this year from the previous quarter, while euro bulls were hoping for at least 0.4 percent growth. The French economy showed no growth, while analysts predicted an increase by 0.4 percent, and the Italian economy contracted by 0.1 percent instead of rising 0.2 percent as was predicted by experts. At the same time, the German economy grew 0.8 percent, exceeding expectations of 0.7 percent growth.
Eurozone annual inflation was 0.7 percent in April up from 0.5 percent in March, matching predictions.
European Central Bank Vice President Vitor Constancio said:

We still see no distinct signs of deflation in the euro are for the time being.

Yet he also stated:

We are determined to act swiftly if required and don’t rule out further monetary policy easing.

Slow economic growth and prospects for monetary stimulus hurt the euro but it managed to recover a bit against some majors, including the dollar.
EUR/USD was down from 1.3714 to 1.3648 before bouncing to 1.3713 as of 17:38 GMT today. EUR/GBP declined from 0.8177 to 0.8166, reaching the low of 0.8143 intraday. EUR/JPY was down from 139.72 to 139.16.

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