Sunday, 18 October 2009
He Euro has steadily declined
he Euro has steadily declined since China’s GDP report was released erasing gains from yesterday built on the rising U.S. equity markets. The world’s third biggest economy saw growth fall to its slowest pace in nearly a decade at 6.1% as exports continued to decline. The country has been a source of growth for the global economy and slumping demand for its goods is a reflection of the weakness that has gripped the broader economy. The euro/ dollar had reached as high as 1.3270 before its current descent which sent it to 1.3130 before finding support. Euro-zone February industrial production falling by a record 18.4% added to bearish sentiment lead by a 4.3% drop in durable goods. Also, the region’s March CPI was confirmed at 0.6% which will perpetuate deflation concerns as it is below the central bank’s 2% target.