EUR’s Strength is a Concern for Industry
November 10th, 2009 Posted in Analyst Picks
The German ZEW Economic Sentiment dropped to 51.1 from 56 in October. The median forecast of economists was for a decline to 55. The Euro-Zone Sentiment also dropped from 56 to 51.8 while economists expected an increase to 58.9. This decline represents businesses’ concern over the continuous rise in the EUR’s value, as the region using the common currency pulls out of the worst recession in six decades.
While the EUR remained steady after the release of the news, as the U.S market opened the EUR dropped versus the Dollar, reaching as low as $1.4953 and currently trading at $1.4990. With the growing concern as to the exchange rate it will be difficult to support the EUR at a level above $1.5000.
