Euro Near 22-Month Lows as the Eurozone Economy Slows Down

The euro today traded near 22-month lows against the US dollar as investors remained worried about the state of most euro area economies. The lack of releases from the eurozone docket also contributed to the EUR/USD currency pair’s decline amid mixed releases from the US docket.
The EUR/USD currency pair today fell from a session high of 1.1162 to a low of 1.1117, which is a level last touched in May/June 2017 before recouping some of its losses.
Although there were no releases from the European docket today, investors were worried about the state of the euro area economy following the recent spate of disappointing data from the region. The weak German IFO business climate index published yesterday was still fresh on most investors minds as it was another red flag for the European Union‘s largest economy. Germany has also reported weak manufacturing and GDP data of late, which has contributed to the negative investor sentiment towards the single currency. The admission by the European Central Bank vice President Luis de Guindos that the eurozone economy is in trouble also added to the pair’s troubles.
The currency pair snapped back from its lows in the early American session following the release of negative US jobless claims data. The upbeat US durable goods orders had a muted impact on the pair.
The pair’s future performance is likely to be affected by geopolitical events given the empty European docket and the US GDP data due for release tomorrow.
The EUR/USD currency pair was trading at 1.1132 as at 18:07 GMT having fallen from a high of 1.1162. The EUR/JPY currency was trading at 124.28 having dropped from a high of 125.23.

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