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Euro rises despite IMF report on euro zone growth

2019-11-06 02:23 pm | Resource: News | No Views : 46

 Euro rises despite IMF report on euro zone growth

The euro rose against the major currencies during Wednesday's trading after a number of data from the euro area and Germany, the largest economy in the region as traders followed the report of the International Monetary Fund on the future of the euro zone

IMF Eurozone Growth Slows Slower Since 2013

The International Monetary Fund (IMF) has estimated that real euro-zone GDP will grow at a slower rate over the past six years, according to a regional economic outlook report released on Wednesday. The euro zone was expected to grow by 1.2% in 2019, cutting 0.1 percentage points from the original forecast. It will represent the lowest annual growth rate since 2013.

The IMF expects the bloc to grow 1.4% in 2020 and 2021, reducing its forecast by 0.1 percentage points for the twelve-month periods. The report highlights weaknesses in the German and Italian economies as a major cause of the euro zone economic slowdown.

Germany cuts 2020 growth forecast to 0.9%

Top German economists, who met at the Council of Economists, lowered the country's growth outlook for this year and next year again, citing uncertainty about Brexit, the trade dispute between the United States and China, a sharp downturn in the automotive industry as well as a shrinking labor force. In Germany as the biggest burdens facing its export-oriented economy.

In its annual report, the Board lowered its 2019 growth forecast from 0.8 to 0.5%, while 2020 growth fell from 1.7 to 0.9%, which is adjusted for an additional working day and is expected to fall to only 0.5%.

The council concluded in the report that the application of the rule of curbing debt - the rule laid down in the country's constitution requiring the government to maintain the structural deficit below 0.35% of GDP - would be sufficient, although two members of the body suggested that the rule be Adjusted to allow additional flexibility in light of the economic downturn.

The official Q3 GDP figures will be published on November 14th.

EUR trades against currencies

• The euro rose 0.14% against the dollar to trade at 1.10878 levels.
• The euro rose against the pound by 0.13% to trade the euro pound at 0.8607.
• The euro fell against the Japanese yen by 0.2% to trade the euro at 120.84.
• Against the Australian dollar, the euro was up 0.09% to trade at 1.6075


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We offer you the analysis of the US dollar against the Japanese Yen on Wednesday, April 17, 2019 with the most important expectations for the dollar against the Japanese yen on the market. Time frame Used - four hours The USD/JPY is moving in a bullish direction in the near term. USD/JPY is still facing resistance and selling pressure around 112.10 as the USD-JPY closed yesterday's session down below 112.00…

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