The European single currency dropped versus most of the 16 main traded currencies today as the outlook for the economic bloc declined considerably after theGerman ZEW Economic Sentiment report brought negative data to traders, which opted for other currencies in the region and overseas as Germany is the main economy currently using the euro. Greece’s deteriorating budget deficit is still a reason of big concern and is affecting the appeal for the euro, as the European Central Bank affirmed that further measures should be taken by the Southern European nation to solve its growing budget crisis. The pound climbed versus the euro as the U.K. posted a higher than expected annualized inflation rate.
Speculations that a slow down in the Eurozone recovery pace are already affecting the outlook for the currency, according to analysts. The region still has low interest rates, and the disparities among the bloc’s members are influencing traders who would rather invest in other regions for the moment.
EUR/USD traded at 1.4276 as of 17:26 GMT from a previous rate of 1.4391 yesterday. EUR/GBP declined to 0.8715 from 0.8815.
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