Weak German economic data influenced value of the euro against the US dollar, which fall to its lowest level in two-and-a-half years).
German annual inflation rate is slowing consecutively since July 2019. GDP growth forecast for German economy has also been corrected and reduced. Slowdown in leading economy’s export dependent manufacturing sector might affect the euro zone and spread into the whole EU.
Another important factor affecting the euro is European Central Bank’s (ECB) monetary policy – negative interest rates, quantitative easing, bond buying and other instruments to boost euro zone economy are strengthening the US dollar against the euro.
At first the euro dropped against the US dollar to EUR/USD 1.0903 (lowest since May 2017) than rose back to EUR/USD 1.0938 and again dropped by 0.36 % to EUR/USD 1.0899 (lowest level in two-and-a-half years).