The euro is struggling at its lowest level in over a year against the US dollar and has breached several critical levels since start of October. Massive gains in the greenback following victory of Donald Trump in US Presidential elections have battered the single common currency severely. Besides, euro has been on a relentless decline after ECB data showed Euro zone inflation fell below 2% mark for the first time since 2021 that could trigger rate cuts. Moreover, German Economy Minister Robert Habeck announced last month that the German economy is expected to shrink by 0.2% this year, down from earlier forecasts of a 0.3% growth and marking the second consecutive year of contraction. This bleak outlook also makes Germany the only G7 economy projected to contract in 2024, a continuation of its 0.3% decline in 2023. Currently, EURUSD is trading at a yearly low of $1.0626; almost flat on the day but having lost 2.5% in November alone and over 4% fall since the start of last month. The counter is seen staying pressured on the downside as ECB is on a rate cut spree whereas Trumps proposed fiscal policies are expected to fuel inflation risks and hence delay Fed rate cuts. All eyes are now on US inflation and EU third quarter GDP figure for further directional cues.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of 5 free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories
Over 30 subscriber-only stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app