The 18-block euro currency weakened against the greenback on Friday, dragged lower by the disappointing retail sales data from Spain while reports revealed that the consumer-price inflation in Germany’s Saxony region slowed.
The euro weakened against 13 out of its 16 major currency peers as forecasts that inflation in the region will prompt the European Central Banks to add stimulus.
The euro weakened by 0.20% at $1.3712 against the US dollar at the time of writing, the lowest level since February 28.
Retail sales in Spain declined by 0.4% in February from on an annual basis, compared to the 0.2% fall recorded in the previous month, the Spanish National Statistics Office said.
Meanwhile in Germany, the consumer price inflation in the country’s Saxony region slowed to 0.9% from a year ago, compared to the previous figure of 1.2% seen in February, according to the German Statistics Office of Saxony.
The bearish pattern has been happening since the Federal Open Market Committee posted its statement earlier this month, in which it stated the Federal Reserve would continue with reducing its asset purchases by trimming $10 billion at each monthly policy meeting.
As Federal Reserve’s (Fed) Chair Janet Yellen said the US Central bank’s asset purchases could possible end around October this year and benchmark interest rates may increase in the next six months.
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