Euro Mixed After Poor Macroeconomic Reports

The euro was trading mixed today, falling against some majors, including the US dollar and the Great Britain pound, but rising versus safe haven currencies. Macroeconomic data in the eurozone was mostly poor and put downward pressure on the currency.
The Sentix Investor Confidence dropped from -1.5 in January to -3.7 in February, while analysts had expected an improvement to -1.1. The report commented about the result:

Even in February, the bad news for the economy in Euroland is not abating.

Problems were not confined to the eurozone either as the report said about the economies around the world:

In the other regions of the world, there is also little positive to report.

The Producer Price Index dropped 0.8% in the eurozone (as well as in the whole European Union) in December after falling 0.3% in November. Economists had expected a bit smaller drop by 0.7%.
The Italian Consumer Price Index was the only positive European indicator released today, showing an increase by 0.1% in January on a monthly basis, in line with expectations, after falling at the same rate the month before.
EUR/USD fell from 1.1451 to 1.1434 as of 17:35 GMT today. EUR/GBP traded at 0.8758 after opening at 0.8763 and falling to the daily low of 0.8726. EUR/JPY advanced from 125.41 to 125.67, and its daily high was at 125.95.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *