Euro Goes Down as Economic Data Fails to Meet Expectations

The euro fell against the US dollar today as virtually all economic reports released from the eurozone over the trading session failed to meet market expectations. The shared 19-nation currency also fell against the Swiss franc but fared better versus the Great Britain pound and the Japanese yen.

Eurozone seasonally adjusted gross domestic product rose 0.4% in the fourth quarter of 2016 while experts were anticipating the same 0.5% rate of growth as in the previous three months. Industrial production was down 1.6% in December from November instead of 1.4% predicted by analysts.

The ZEW Indicator of Economic Sentiment for Germany logged a drop from 16.6 to 10.4 in February. The indicator for the whole eurozone dropped from 23.2 to 17.1.

German preliminary GDP rose 0.4% in Q4 2016, missing the average forecast of 0.5%. The German Consumer Price Index fell 0.6% in January from the previous month.

EUR/USD dropped from 1.0597 to 1.0578 as of 21:25 GMT today after rallying to 1.0633 intraday. EUR/CHF opened at 1.0657, rallied to the high of 1.0673, but retreated to 1.0644 later. EUR/GBP was up from 0.8460 to 0.8529 but has pulled back to 0.8483 as of now. EUR/JPY gained from 120.51 to 120.84, bouncing from the daily low of 120.21.

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