The common currency Euro moved lower during London trade on Tuesday after the latest economic report out of Germany underscored investors’ fears of a widening slump within the Eurozone. According to Germany’s Statistics Bureau, industrial production unexpectedly fell to -1.9 in November (month-over-month), well below the anticipated improvement to 0.3%. With Germany the economic driver for the Eurozone, and it is now becoming evident that the trade disputes which have been driven by the Trump administration are ultimately having a negative impact on the global economy.
As reported at 11:46 am (GMT) in London, the EUR/USD was trading at $1.1428, down 0.37%; the pair has ranged from a low of $1.14234 to a high of $1.14897 in today’s session. The EUR/JPY is trading at 124.0320 Yen, down 0.03%, while the EUR/GBP was trading at 0.8898 Pence, down 0.16%.
German Data Disappoints
Besides industrial output, it was reported that Germany GDP had slowed to 1.5% last year, a dismal rate not seen since 2013. The slowdown in the Euro-area is also causing concern among investors on the impact it might have on the European Central Bank’s outlook. The ECB is already in the process of reining in the quantitative easing measures it has taken over the past several years and news such as this might have the ECB rethinking that policy.