Posted On: August 15, 2011
The European Union's shared currency fell from its three-week peak against the U.S. dollar on Tuesday, losing value amid data indicating Germany and the euro zone are enduring a slowdown, Reuters reports
Regional debt problems are weighing heavily and the monetary unit's slippage serves as a reminder that officials and policy makers have significant work ahead of them. Germany's Gross Domestic Product increased 0.1 percent during the second quarter, markedly lower than the forecast consensus of 0.5 percent. GDP in the euro zone also notched meager gains during the second quarter as the 0.2 percent growth rate augmented pessimism.
"The GDP data shows the euro zone economy is slowing very sharply. It's not just a peripheral problem any more, it's spreading to the core," currency economist Lee Hardman of Bank of Tokyo-Mitsubishi UFJ told the wires service.
French President Nicolas Sarkozy and German Chancellor Angela Merkel are scheduled to meet and discuss methods of solving the euro zone debt crisis on Tuesday.
the two leaders are convening in France and they also will discuss the strength of the euro, which serves about 320 million people in 17 countries. The sovereign debt crisis is threatening the survival of the euro.
Category: Industry News
Foreign Exchange Services for Business
With a focus on payment services, Western Union Business Solutions enables businesses of all sizes to send funds internationally through our global payment solutions.
See our available FX payment services