The euro is attempting to recover at the start of today’s trading session after sinking yesterday. The currency was soft during the previous session as comments from European policy makers pictured a pessimistic outlook for Europe’s economy.
The Bundesbank said in its monthly report yesterday:
The further deterioration in economic expectations and the stagnation of new orders point to a rather sluggish course of economic development in Germany until at least the end of 2014.
European Central Bank President Mario Draghi echoed the pessimistic outlook, saying in his speech:
The euro area growth momentum has weakened over the summer months and most recent forecasts have been revised downwards.
Draghi added:
Risks to the economic outlook continue to be on the downside.
The euro sank after the comments while it had already been weakened by risk aversion caused by recession in Japan. Yet the shared 18-nation currency managed to rise at the early Tuesday’s trading despite the negative fundamentals.
EUR/USD ticked up from 1.2449 to 1.2465 as of 1:03 GMT today. EUR/JPY was up from 145.21 to 145.28, touching the high of 145.49. EUR/GBP advanced from 0.7958 to 0.7967.
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