Article by ForexTime
The euro has been hovering near one-year lows against the dollar, after coming under pressure from speculation of more policy easing by the European Central Bank and also by disappointing German Ifo business sentiment data yesterday.
The Ifo business climate index fell for the fourth month in a row, dropping to a worse-than-expected 106.3 from 108, the lowest level in more than a year. The monthly survey was conducted on some 7,000 companies in Germany.
The soft data comes after data earlier in the month on the second-quarter contraction in Germany.
Germany is the Eurozone’s largest economy so the data is important and closely watched and tends to have an impact on the euro.
The Eurozone economy as a whole indicated no growth at all in the second quarter. Meanwhile, unemployment in the region remains high and inflation is so low that it poses a threat of deflation.
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The European Central Bank Chief Mario Draghi suggested in a high-profile speech last Friday at the central banker’s conference in Jackson Hole, Wyoming, that the central bank was ready to take more action in order to deal with the problem of low inflation.
Article by ForexTime
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