Euro is lower today, dropping following the report of the latest industrial production numbers. Some analysts have believed that the euro is overbought, especially against the US dollar, and this might be the beginning of a crash for the 19-nation currency.
According to the latest data from Eurostat, February industrial production output fell 0.8 per cent, which is more than the expected decline of 0.7 per cent. This is the biggest decline for industrial production in 18 months, following on a surge in January.
There might be more weakness ahead for the euro, which is struggling against its major counterparts today. The latest PMI data from Markit is down, and economic confidence is slipping. All of these signs point to the possibility that the 19-nation is on the verge of a major drop, particularly against the greenback.
ECB officials have been trying to stimulate the eurozone economy, and it hasn’t been going particularly well. As a result, there are expectations that perhaps the euro is finally ready to weaken, and perhaps that will lead to some economic growth.
At 13:43 GMT EUR/USD is down to 1.1306 from the open at 1.1385. EUR/GBP is also lower, falling to 0.7947 from the open at 0.7977. EUR/JPY is down to 123.3720 from the open at 123.5780.
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