Euro faces pressure as eurozone growth slows, Currencies Direct says
SPY•The euro faces downside risk as forecasts point to sharply slower third-quarter eurozone growth; the dollar gained support from 3.4% US growth and expectations of a Federal Reserve rate increase in December.
1. Currency pressures
The euro faces downside risk ahead of eurozone GDP figures forecast to show sharply slower third-quarter growth. The European Central Bank left interest rates unchanged, while Christine Lagarde’s announcement that she would step down as president in February weighed on euro sentiment. Sterling edged higher as UK 10-year gilt yields fell to their lowest levels in more than a month. The Canadian dollar remained supported by the Bank of Canada’s rate hike, though potentially muted September GDP could weigh on gains.
