Euro is struggling today, heading lower after the latest industrial production report for the eurozone. Concerns about what’s next for the 17-nation currency are still extent, and that is dragging on performance today.
Eurostat reports that industrial production for the eurozone rose 0.4 per cent in April from the previous month. However, the year-over-year data for April still shows a drop. Additionally, even though the reading surprised to the upside, when the overall production is broken down, it is possible to see a 1.5 per cent drop in energy output and a 2.7 per cent drop for durable consumer goods.
When you get right down to it, there is a reasonable amount of difficulty in the eurozone situation — especially when you factor in record high unemployment and a reluctance by citizens to spend money. Also, with the German courts hearing arguments about the legality of various ECB programs designed to help ease the sovereign debt crisis, there are a number of questions that need to be resolved.
For now, the euro is down against its major counterparts as a result of all this uncertainty.
At 13:45 GMT EUR/USD is down to 1.3304 from the open at 1.3315. EUR/GBP is down to 0.8491 from the open at 0.8510. EUR/JPY is down to 128.0380 from the open at 127.8850.
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