Once again, economic data out of the eurozone is causing concern for Forex traders and investors. However, the disruption isn’t as widespread as some might think. Rather than trading down across the board, the euro is trading mixed against its major counterparts.
The latest producer prices data fell again, declining from September to October, according to Eurostat. A 4.0 per cent decline was greater than the expected 0.3 per cent drop, and represented the sharpest month over month decline in about a year. With more economic trouble for the eurozone, many expect the European Central Bank to take action on Thursday.
ECB officials will meet for a monthly policy meeting on Thursday, and determine what to do to stimulate the economy. While the euro is trading lower against the US dollar on this news, it has yet to move into the red against other currencies. The expectations of more weakness, though, are there, and the 18-nation currency is likely to see more drops in the future, even though it is holding its own tolerably well right now.
At 11:29 GMT EUR/USD is down to 1.2447 from the open at 1.2472. EUR/GBP is higher, though, gaining to 0.7932 from the open at 0.7924. EUR/JPY is up to 148.0820 from the open at 147.5690.
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