Euro Struggles After Wage Data

The latest wage data for the eurozone has been released, and it looks as though wage growth slowed in the first quarter of 2014. This news is disappointing to many, since it indicates that the wage situation in the eurozone isn’t likely to improve anytime soon. It also shows that things aren’t picking up in terms of an economic recovery.

A report from Eurostat indicates that worker pay rose 1.5 per cent in the first three months of 2014. This represents a slower rate of growth from the previous quarter, as well as a slower rate of growth as compared to a year earlier. The news comes as the ECB attempts to kickstart the economy by encouraging inflation.
Even though the rate of job vacancy growth has slowed, things in the 18-nation eurozone are improving so slowly that many assume that the ECB will have to do more than resort to negative deposit rates. This expectation of future euro weakness is weighing on the currency right now, and sending it lower against some of its major counterparts today.
At 13:07 GMT EUR/USD is lower, dropping to 1.3543 from the open at 1.3574. EUR/GBP is also lower, falling to 1.6951 from the open at 1.6983. EUR/JPY, though, is a little bit higher, rising to 138.3305 from the open at 138.2200.

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