While the evidence continues to mount of a recovery in the U.S. economy the reverse is true in the Eurozone where new data has given rise to speculation that the European Central Bank may now move to a more aggressive easing policy to halt the slowdown. The latest data from the Eurozone showed that the whole of the Eurozone economy contracted for a sixth consecutive quarter, with France’s growth now in a contractionary phase. The German economy, which has long been the driver of Eurozone growth, did improve in the last quarter, but the growth rate was insufficient to change the outlook for the greater Eurozone area.
As reported at 10:45 a.m. (JST) in Tokyo, the EUR/USD pair was trading at $1.2842, a 6-week low before recovering to $1.2879, still a 0.3% loss in the session. The EUR/JPY pair lost 0.4% in the Asian session, trading at 131.82 Yen. At one point, the USD/JPY pair had risen to 102.76 Yen, the fifth consecutive daily rise and a level unseen in more than 4½ years, before settling back to 102.35 Yen. The greenback has gained more than 18% on the Yen since the beginning of the year, and analysts predict that if it continues to gain through the year’s end it could close up with a nearly 24% gain.
Euro Lower as Eurozone Growth Stalls
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.
... Read more After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.