The euro dropped today against the US dollar and the Japanese yen, extending its decline for the third straight trading day. The shared 17-nation currency managed to outperform the pound, almost erasing its weekly loss against the currency of the United Kingdom.
Traders were selling the euro on fears that recession will continue to plague the eurozone and will spread across the region. The Bank of France predicted that the French economy will slip into recession as nation’s gross domestic product is expected to contract 0.1 percent in the fourth quarter of this year. France’s industrial production fell as much as 2.7 percent and manufacturing output slumped 3.2 percent in September.
The news from Greece was not encouraging either. The indebted country will not receive a bailout from the European Union until the troika will provide a report delaying the aid. It is unlikely that the Hellenic Republic will get desperately required money next week.
EUR/USD dropped from 1.2745 to close at 1.2709 today (the lowest closing price since September 7). EUR/JPY declined from 101.26 to 100.99, while its intraday low of 100.40 was the lowest since October 11. At the same time, EUR/GBP advanced from 0.7972 to 0.7993.
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