Euro is trading mixed against its major counterparts again today. The 18-nation currency continues to struggle against the US dollar on policy divergence, but is managing to eke out gains against the pound and the yen today.
The latest economic data out of the eurozone isn’t very encouraging. According to Eurostat, consumer prices are slowing in their rise again. The year over year measure is down, and it’s been months since the eurozone’s inflation rate was above 1.0 per cent. The ECB likes to see inflation of around 2.0 per cent, so it is not surprising that there are concerns that the eurozone could slip into recession again.
Recently, the ECB took steps to boost inflation, but those measures aren’t likely to have had an impact yet, so there probably won’t be any further action. Additionally, there are hopes from the fact that retail sales in Germany are strong, and French consumer spending has risen. There are hopes that these two economies can help lead the eurozone economy to better strength.
Euro is lower against the dollar after these revelations, but it is managing to hold its own against the yen and pound.
At 14:04 GMT EUR/USD is down to 1.3386 from the open at 1.3397. EUR/GBP is up to 0.7930 from the open at 0.7921. EUR/JPY is up to 137.7490 from the open at 137.7165.
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