The euro dropped today as the manufacturing and service sectors continued to contract in the eurozone, fueling speculations that the European Central Bank will ease its monetary policy.
Both eurozone manufacturing and service Purchasing Managers’ Indices were below the 50.0 level in April, indicating a contraction. Germany contributed to the decline as its PMIs were also in the contraction zone. Reports from outside of Europe were not good either, leading to talks that the ECB will have no other choice but to ease its policy further.
EUR/USD declined from 1.3065 to 1.2998 and EUR/JPY dropped from 129.64 to 128.25 as of 11:13 GMT today.
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