Economic news

Euro steady though economic data disappoints

The euro was stable on Wednesday although recent economic figures out of Europe disappointed investors as the euro area economy accelerated less than predicted in the third quarter.

Photo: Reuters

The common currency hovered at $1.1343, stable from its New York close, though it has slumped 2.3 percent against the greenback this month.

Political turmoil in Germany, following chancellor Angela Merkel’s decision to end chancellor’s political career in 2021, is also weighing on the single currency. Moreover, the row between Rome and Brussels over Italy’s free budget plan has hurt the euro.

The pound wobbled not far from its mid-August lows, trading at $1.2705, after credit ratings agency Standard & Poor’s said a ‘no-deal’ Brexit would likely lead to negative economic growth.

Some quickly catalysts for the traders could appear after the Bank of England’s monetary policy meeting on Thursday, when it is anticipated to hold interest rates steady and disclose terms necessary for policy tightening.

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