Euro falls below 1.23 against dollar

Euro slumped against the dollar to the lowest since January 23 against the dollar, following earlier data from the euro zone, and amid a lack thereof from the US, the world's largest economy. 

As of 04:58 GMT, EUR/USD fell 0.78% to 1.2281 from the opening of 1.2377, with a two-week low at 1.2278, and a session-high at 1.2406. 

Earlier German data showed industrial production fell 0.6% in December, compared to a 3.1% rise in November, while analysts expected a 0.7% dip, while French trade deficit shrank to 3.5 billion euros from 5.6 billion, beating expectations of a 4.8B deficit. 

The European Central Bank released its economic bulletin while the European Commission released its economic forecasts, projecting GDP growth for the euro zone at the fastest rate in a decade at 2.2%, up from 1.7%.

The Commission expects 2018 growth in the whole European Unon to reach 2.1%, and 1.9% in 2019, while forecasting inflation to rise 1.5% in 2018, while accelerating to 1.6% in 2019. 

German Chancellor Angela Merkel said in earlier remarks that negotiations to form a governing coalition were hard but worth it, adding that she expects to reach a stable government soon, while calling for investing in infrastructure and the digital sector. 

Earlier from the US, Federal Reserve Bank of New York President William Dudley spoke about banking culture at an event jointly hosted by Thomson Reuters and the European American Chamber of Commerce, in New York, while markets await Federal Reserve Bank of San Francisco President John Williams' speech at a community leaders luncheon, in Honolulu.