Q3 Eurozone Debt Report Doesn’t Help Euro in Forex Trading

The latest numbers out of the eurozone, showing a reduction in government debt during Quarter 3 of 2015 aren’t helping the euro in Forex trading against its major counterparts. Euro is down against the dollar and the pound today, as well as losing ground against other currencies.

Euro is heading lower against the sterling and the greenback today, thanks in large part to the remarks of Mario Draghi earlier this week. The ECB kept its rate steady and didn’t announce any new stimulus, but Draghi indicated that easing could take place by March. On top of that Goldman Sachs has downgraded its view of the euro, and expects the 19-nation currency to be worth less than the dollar by the end of 2016.

Due to all of this, it is little surprise that the euro hasn’t been helped by the news that eurozone debt eased in the third quarter of 2015. Sovereign debt was down, according to Eurostat, with the loans extended as part of bailouts amounting to only 2.2 per cent of GDP, rather than 2.4 per cent of GDP, as was the case during the same period in 2014.

At 20:14 GMT EUR/USD is down to 1.0792 from the open at 1.0888. EUR/GBP is down to 0.7556 from the open at 0.7645. EUR/JPY is up to 128.1790 from the open at 127.9280.

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