Euro Trading Close to Two-Year Lows Against the Dollar, Outlook Bleak for Eurozone Economy
Arslan Butt • 1 min read
The Euro is trading close to a two-year low against the US dollar over a bleak outlook for the Eurozone economy. At the time of writing, EUR/USD is trading at around 1.092.
An impending fear of recession in the German economy still looms amid weak economic data releases. Earlier this week, disappointing manufacturing and services PMI data from across Eurozone economies dented the sentiment and drove bearishness in the single currency.
Despite the ECB rolling out monetary stimulus measures, economic growth has yet to pick up in leading European economies. Global trade tensions and uncertainties surrounding Brexit have been weighing on major Euro area economies lately, and neither of these issues are close to resolution so far.
In another possible blow to the Euro, the WTO ruled on Thursday that Airbus had breached state aid rules by receiving illegal aid by the EU. This announcement is likely to encourage Trump to announce additional tariff hikes on nearly $8 billion worth of EU imports, escalating trade tensions and exerting more pressure on the already strained exports sector.