The common currency of the European Union lost value for a fifth day on Friday after economic data indicated the euro zone continues suffering from economic vulnerability, Bloomberg reports.
Anticipations are running high that the European Central Bank (ECB) and President Mario Draghi are driving toward cutting interest rates, which could be next week. The 17-nation currency was slipping toward its biggest weekly loss since February after data showed the unemployment rate advanced to its highest ever and inflation slowed.
"It is clear that there has been a major sentiment change on the euro," FX strategy head John Hardy with Saxo bank in Copenhagen told Reuters on Friday. "The ECB's single mandate has always been on inflation so this gives Draghi and co. further reason to do something at next week's meeting. We see considerable further downside. The likes of euro/dollar back into the old range, down towards $1.30."
The common currency's losses on Friday were roughly 0.4 percent against the world's reserve currency. Its weekly losses amounted to roughly 2 percent.
The euro fell to its 14-day trough after the data showed regional inflation has slowed, according to Reuters.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.