Euro to US Dollar (EUR/USD) Exchange Rate weakens for fourth day as inflation data weighs
Frankfurt (Mar 28) The Euro to USD exchange Rate weakened for a fourth consecutive day following the release of disappointing inflation data out of Germany and Spain.
The single currency declined against the majority of its most traded peers after the data spurred increased speculation that the European Central Bank will add new stimulus measures at next week’s policy meeting.
According to the German Statisitcs Office of Saxony, consumer price inflation in the German province slowed to 0.9% in March from the previous year, down from the 1.2% figure recorded in the previous month. Annual inflation in the whole of Germany has also fallen from 1% to 0.9%.
Data out of Spain also raised concerns. Prices in the struggling nation fell unexpectedly by 0.2% from the previous year marking the first decline seen since 2009 and raised fears that the Spanish economy is once more sliding backwards.
Over the past three months the Euro has been the second worst performing western currency after the Canadian Dollar and has depreciated by 1.5%.
Next week promises to see plenty of volatility for the Euro as a wealth of data is due for publication. All eyes will be on Monday’s Eurozone inflation rate data and Wednesday’s Producer Price inflation reports. That day will also see the release of GDP data. Thursday too promises to be a big day as it sees the publication of Eurozone retail sales data and the ECB’s interest rate decision and press conference.