The euro dropped today against most major currencies, including the US dollar and the Japanese yen, as the economic sentiment deteriorated in Germany as well as in the whole eurozone. Yet the shared 19-nation currency managed to gain against the Great Britain pound and the Swiss franc.
The ZEW Indicator of Economic Sentiment for Germany dropped from 25.0 to 12.1 in September. The report said:
The weakening economic development in emerging markets dampens the economic outlook for Germanyâs export-oriented economy. While economic growth in the second quarter was largely driven by external demand, it is becoming less likely that exports will stimulate growth in the near future.
The index for the eurozone also declined, falling 14.3 points to a reading of 33.3. At the same time, the indicator of the current situation in Germany edged up by 1.8 points to 67.5.
The euro was mostly lower after the report. The divergence between monetary policies in the United States and the eurozone makes the longer-term outlook bleak for the euro-currency.
EUR/USD dropped from 1.1315 to 1.1269 as of 20:35 GMT today. EUR/JPY ticked down from 136.03 to 135.72, reaching the low of 134.98 intraday. Meanwhile, EUR/GBP bounced to 0.7344 after opening at 0.7335 and falling to 0.7311. EUR/CHF went up from 1.0955 to 1.0974.
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