Euro Remains Below $1.35 On Lackluster Eurozone Data
The euro remained below $1.35 on Thursday as investors began to turn their attention to next week’s Federal Reserve meeting.
The common currency traded at $1.3469 at 8:20 GMT as a strong dollar and weak eurozone economic data weighed.
On Wednesday, the European Commission released consumer confidence data, which showed that the region’s consumers were not fully convinced that the economy was back on track. The Wall Street Journal reported that eurozone consumer confidence dropped to minus 8.4 in July from minus 7.5 in June. The figure was below analysts’ expectations of an unchanged reading.
The data added to a growing list of economic indicators that show the eurozone economy is struggling to stay afloat.
In June, the European Central Bank implemented a number of easing measures in order to help kick start the economy and combat falling inflation, but most believe the bank will be forced to ease again in the months to come.
The U.S. Federal Reserve is moving in the opposite direction and is widely expected to continue cutting its monthly asset purchases at next week’s policy meeting.
However, markets are getting excited about next week’s meeting, as the bank will likely revise its economic outlook to include the nation’s recently strong data. The June meeting came before a record breaking non-farm payrolls report and this month’s strong inflation report.
With the job market on the mend and inflation steady near two percent, many believe the bank could hint at an interest rate hike sooner than expected.
Fed Chair Janet Yellen said the bank plans to stay the course, but that they could raise interest rates early if economic data warrants it.
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