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Output Data Doesn’t Hurt Euro Too Much

September 12, 2013 at 14:38 by Miranda Marquit

Stack of one-euro coins on a chartWhile the euro was lower earlier, it is recovering some of its equanimity now. Even though factory output data disappointed, and the euro dropped, things are changing a bit, and the 17-nation currency is struggling its way higher as risk aversion fades a little bit.

Earlier today, Eurostat released data about the eurozone’s manufacturing data. Factory output dropped by 1.5 per cent between June and July, representing the biggest drop since September 2012. The news also put the data at its lowest level in more than three years.

Euro fell against its major counterparts on the news, which was taken as an indication that the eurozone isn’t quite ready to sustain its economic recovery. This added to the speculation that the ECB might decide to cut rates further, from the already low 0.5 per cent.

However, the 17-nation currency is seeing a bit of a resurgence right now. Some of the risk aversion that plagued the markets prior to the US session has ebbed, and there is a bit of risk appetite to help the euro — despite the huge drop by gold prices today.

At 14:35 GMT EUR/USD has moved to positive territory, at 1.3313 from the open at 1.3311. EUR/GBP is still lower, down to 0.8411 from the open at 0.8418. EUR/JPY is also still lower at 132.1065 from the open at 132.9555.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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