The euro is losing ground fast, thanks in large part to the latest data out of Germany. Concerns about the German ZEW have the euro down pretty much across the board, particularly against the US dollar. Concerns about the eurozone’s largest economy have many speculating that, perhaps, the ECB will have to take further steps to stimulate the economy of the 18-nation currency region.
Germany is the eurozone’s largest economy, and is often seen as the bellwether for the entire eurozone. The ZEW measures investor morale, and the latest reading showed a drop to 27.1, which is its lowest reading in about 18 months. Analysts had expected a reading of 28, which means that this news is even more disappointing.
There are concerns that a drop in Germany’s economy could drag on the rest of the eurozone, leading to more aggressive steps by the ECB to boost the eurozone economy. This could mean more easing — and more losses — for the euro. Right now the euro is lower against its major counterparts, including plunging through the 1.3600 against the US dollar.
At 14:41 GMT EUR/USD is down to 1.3575 from the open at 1.3619. EUR/GBP is also lower, dropping to 0.7912 from the open at 0.7971. EUR/JPY is down to 138.0815 from the open at 138.2850.
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