Euro remains steady despite disappointing data

Published: 15 Aug at 9 AM Tags: Euro, Dollar,

The euro remains steady as growth data and inflation remain soft in the eurozone prompting expectations of European Central Bank stimulus plans. The single currency has also been given a boost after the dollar was hit by weaker than expected jobs data coming out of the US last week.

Following a drop to $1.3348 the euro recovered to $1.3363. Although remaining steady against the dollar, the euro was a little more unsteady against the yen. The single currency drifted up to 137.25 yen before falling back to 137.00. The euro is currently trading at 136.93 yen.

Data for the second quarter shows that economic growth in the eurozone stalled, and Germany’s growth actually contracted. Inflation has also stalled at a rate that leaves the very real threat of deflation.

Weak jobs data coming out of the US saw the dollar fall against the yen. The greenback dropped from a high of 102.66 to 102.49 yen. Things could change as weaker than expected GDP figures from Japan could spur the Bank of Japan to further easing measures.

Sterling has managed to pull back some of its recent losses and is trading at $1.6684. The Bank of England is unlikely to raise interest rates in the near future.