Investing.com - Financial Markets Worldwide
Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Eurozone Recession Could Be The Longest In The Currency's History

ByBenzinga
AuthorBenzinga
Published 05/13/2013, 07:47 AM
Updated 05/14/2017, 06:45 AM
NWSA
-
NOTE
-

The euro slipped below $1.30 over the weekend and began Monday morning trading at $1.2987 as markets prepared for a host of economic indicators to be released this week.

Most notably, Eurostat will release the region's first quarter GDP data, due out at 11:00 on May 15th. The Luxembourg statistics office will also publish a detailed report on Thursday that includes March trade figures and April inflation.

The GDP data is not expected to lift eurozone spirits after the two day Group of Seven finance ministers meeting ended on a sour note over the weekend. UK Chancellor of the Exchequer George Osborne commented that the region's growth outlook was uncertain in his concluding remarks on Saturday, which added downward pressure to the common currency.

Leading up to the release of the GDP data, Bloomberg reported that economists are expecting the data to confirm speculation that the eurozone is currently in the middle of the longest recession the region has suffered since the euro's creation.

A Bloomberg News survey showed the median estimate of 39 economists' forecasts at a 0.1 percent decline, which would be the sixth straight quarterly decline for the region.

With record high unemployment and investor confidence at a low, eurozone leaders are working to find a balance between austerity and growth. At 3 pm on Monday, the region's finance ministers will meet to discuss and review the Cypriot and Spanish bailouts and possibly sign off on another aid payment to Greece.

The ministers are also expected to discuss the current economic climate following the European Commission's revised 2013 forecast, which predicts a 0.4 percent contraction.

BY Laura Brodbeck

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.