Wednesday saw the shared currency of the European Union drop to its six-week trough against the U.S. dollar after the release of underwhelming economic data about Germany and the euro zone, according to Bloomberg.
Germany, owner of the largest economy in the 17-nation bloc, developed less than forecast earlier this year, expanding 0.1 percent. That was well short of the 0.3 percent growth forecast by analysts.
"The event-risk calendar over the next week looks skewed in favor of renewed" vulnerability for the 17-nation currency, states a client note penned by senior currency strategist Richard Franulovich with Westpac Banking Corp. in New York, according to Bloomberg. The advance of the U.S. dollar is "perfectly consistent with an unmistakable shift in growth differentials, the senior currency strategist told the news source.
Gross domestic product in the euro zone fell 0.2 percent during the first quarter of the year, European Union statistics office data notes.
The combination of data from the euro zone and Germany heightens the probability that the European Central Bank will intervene, according to Reuters.
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