Earlier today the Euro dropped to a two-week low to the Dollar. Data showed that services and manufacturing output in the Euro area has declined for a 15th month. This is yet another sign of a worsening recession for the region.
The Euro dropped as against most of its 16 major peers, after data was released that showed that the Euro-area composite index, based on a survey of purchasing managers in services and manufacturing, held below the level of 50 at 46.5 in April. A reading below 50 signals contraction, as opposed to expansion.
The data has now added to speculation that the European Central Bank (ECB) could cut rates in an effort to encourage growth.
With the outlook remaining bleak and a cut in rates a probability, Euro negative sentiment holds fast.
The Euro dropped 0.6% to $1.2985 and by 1.2% to 128.16 Yen. The Yen gained 0.5% to 98.69 to the Dollar.
The Yen and the Dollar had gained ground following a report that showed that Chinese manufacturing had expanded at a slower pace, which meant more demand for safer assets.
With the outlook remaining bleak and a cut in rates a probability, Euro negative sentiment holds fast.
The Euro dropped 0.6% to $1.2985 and by 1.2% to 128.16 Yen. The Yen gained 0.5% to 98.69 to the Dollar.
The Yen and the Dollar had gained ground following a report that showed that Chinese manufacturing had expanded at a slower pace, which meant more demand for safer assets.
Gold, Copper and Nickel have all dropped this year. Last week Gold posted its biggest daily drop in 33 years.
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