Poor data undermines the euro

The euro had a very poor end to the week, dropping considerably against most of its major trading partners following a raft of negative data releases yesterday. The main news was that the overall rate of unemployment in the region had reached record highs of 12.2%. Furthermore, other notable releases yesterday showed that inflation increased by only 0.7%, German retail sales fell by 0.4% and German consumer confidence had also faltered. The raft of negative data – especially the growing concerns about unemployment – has created speculation in the market that the European Central Bank may look to ease monetary policy to try and give the European economy a boost. This drop came following a positive first half of the week for the euro, where it made solid gains against its major counterparts. Very little data is due to be released today as much of Europe is celebrating a bank holiday in observance with All Saints Day; as a result, euro movements will be influenced from data released elsewhere as well as the continued movement form yesterday’s key economic releases. Call now for the latest on euro prices.