Euro Sinks Lower Ahead Of ZEW Results
The euro sank lower on Tuesday ahead of inflation and GDP figures due out later in the week. The common currency traded at $1.3362 at 6:40 GMT with most expecting the region’s data to disappoint.
On Thursday, the eurozone is expected to release inflation data that most believe will remain dangerously low at 0.4 percent. The bloc has been struggling with inflation this year with figures below 1 percent in what the European Central Bank has called “the danger zone."
Also due out Thursday is GDP data from the bloc as a whole, Germany and France. All three reports are forecast to show lackluster growth as the region struggles through a very uneven recovery.
Later in the day on Tuesday, Germany is set to release its ZEW sentiment survey, which Reuters reported will likely reflect a good deal of concern as geopolitical tension around the world weighs.
The ongoing conflicts in Iraq and Gaza coupled with rising tension between the West and Russia is likely to have a sizable impact and drag the figure to its lowest level since the eurozone crisis ended.
The bloc is battling a sputtering recovery while at the same time engaging in a sanctions war with Russia, one of the eurozone’s largest trading partners.
Many are worried that the EU’s new, stricter sanctions will also have a negative impact on the eurozone’s economy as it will restrict a huge part of the region’s trade. The euro is likely to continue sinking over the next week, as data reflects the region’s struggle.
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