The common currency of the European Union lost value on Thursday after economic data demonstrated the 17-nation bloc fell further into a recession, Bloomberg reports.
The two largest economies of the euro zone, Germany and France, saw gross domestic product fall during the final three-month period of last year. The European Union statistics office noted fourth-quarter gross domestic product contracted 0.6 percent as compared to the third quarter.
“The GDP numbers were weaker than expected and while it’s not dramatic, going forward if data continues to weaken and does not reflect the improved financial conditions, we may see some monetary policy response from the ECB,” currency strategist Paul Robson with RBS told Reuters on Thursday.
The monetary unit lost value for a third consecutive day against the Japanese yen on Thursday. But as market sentiment indicates the region is emerging from the dark pall cast by the ravaging tendencies of the sovereign debt crisis during the past three-plus years, the past 90 days have seen the euro climb about 4.7 percent against the world’s reserve currency.
German and French GDP contraction raised questions about whether the region will climb back early this year, according to Reuters.
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