No end in sight for the suffering of the euro area

In stark contrast to optimistic US data and a better picture in China as well, the euro zone indicators were disappointing on Thursday, fueling fears of a long-term slowdown or even a recession in the bloc. Initial PMI readings for April showed that the manufacturing sector in the euro zone is still contracting, while service activity has fallen more than expected.

The euro fell after the data and was further pressured by the strength of the dollar, pushing the EUR / USD pair to a 10-day low of 1.1224. With most European markets closed today and Monday to celebrate the Easter holiday and a few upcoming releases next week, the euro is likely to find it difficult to find any supportive factors in the coming days.

The pound was also weak on Thursday even though the UK retail sales figures were very strong and the recent British general data were relatively strong. The British pound was unable to overcome the strength of the dollar amid continued uncertainty over Britain's exit from the European Union. The Pound dropped below the 1.30 level against the Dollar.

The British parliament may vote next week on whether the UK should remain in the EU customs union after Britain's exit.

No end in sight for the suffering of the euro area


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