Euro Drops as BOE Cuts Growth Forecast, German Production Falls

The euro weakened after Bank of England Governor Mervyn King cut forecasts for economic growth and said an interest-rate cut may be counterproductive.

The 17-nation currency fell against all of its 16 major peers after reports showed declines in German industrial production and exports added to evidence Europe’s sovereign-debt crisis is hurting the region. The pound appreciated for a second day against the dollar and the euro after the BOE’s quarterly inflation report underperformed projections. The currencies of Sweden and Norway strengthened to multi-year highs against the euro.

via Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.