Euro Struggles After Lending Data Release
Euro is struggling today as uncertainty and the latest economic data weigh on the 17-nation currency region. Even though there have been some improvements in the last few weeks, concerns about what’s next are weighing on the euro.
The latest data out of the eurozone shows that lending to the private sector contracted in July. The news indicates that there are still some difficulties in the 17- nation currency region when it comes to economic growth and liquidity. Inflation pressures remain somewhat low, and that means that the European Central Bank is likely to keep interest rates lower.
While there might not be a rate cut, it will be some time before an interest rate hike is seen.
On top of that, political wrangling is underway again. Angela Merkel, in the midst of an election campaign in Germany, is saying that Greece should never have been allowed into the currency union, even while she lobbies to keep the eurozone together.
General uncertainty is also weighing on riskier assets, like the euro. With Syria causing concern, risk appetite is relatively low, and the euro is struggling as a result.
At 13:22 GMT EUR/USD is down to 1.3354 from the open at 1.3393. EUR/GBP is down to 0.8606 from the open at 0.8615. EUR/JPY is higher, up to 130.3255 from the open at 129.9750.
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Earlier News About the Euro:
- Euro Gets Boost as Rate Cut Possibility Fades (2013-08-27)
- Euro Ends Friday with Gains (2013-08-24)
- Euro Struggles to Log Gains On Better Economic News (2013-08-22)
- Euro Gains Ground As Forex Traders Square Positions (2013-08-20)
- Euro Gains on Bundesbank Comments About Inflation (2013-08-19)