Forex: German ZEW Sends EUR/USD to 2-Month Lows
The euro fell to fresh two-month lows against the US dollar, after data showing that German economic sentiment dropped unexpectedly this month added to concerns over a slowdown in the Eurozone’s largest economy.
During European morning trade, the EUR/USD currency pair hit 1.2662, which is its lowest since September 7. After dipping to the boundaries of 1.2660, the pair subsequently consolidated at 1.2672, shedding 0.29 per cent, Forexpros reported on 13 November 2012.
**Germany’s ZEW Data**
The significant EUR/USD decline was triggered by the release of the ZEW Survey in Germany, which assesses the current economic situation in the country. The data, published at 10:00 GMT, has come in below expectations in both its components for November: Economic Sentiment fell further to minus 15.7 versus minus 11.5 in the previous month and Current Situation dropped to 5.4 from 10.0, against forecasts of minus 7.0 and 5.8 respectively. The ZEW survey in the EU has also came in lower at minus 2.6 from minus 1.4. The report said that “recessionary developments” in the Eurozone are expected to curtail German economic growth in the next six months.
**Greece Also Adding Pressure**
The EUR/USD is also under pressure from the unresolved Greek bailout, with officials saying that Eurozone finance ministers will meet again towards the end of this month to discuss additional funding for the deeply indebted country.