EUR/USD drops to 22-month low

ُEuro fell on the European market against a basket of global currencies on Thursday, continuing its losses for the third day in a row, against the dollar, to get closer to the 22-month low recorded earlier yesterday, as the currency is still under the pressure of the weakness concerns in the European economy, with the increase in prospects that the European Central bank may be returning to the era of buying bonds to stimulate the economy, in an attempt to face the sharp economic slowdown.

As of 07:25 GMT, EUR/USD fell by less than 0.01% to trade at $1.1148, compared with the opening at $1.1153, after reaching a low of $1.1144, and a high of $1.1162.

Yesterday, Euro lost 0.7% against the dollar, in its second consecutive daily loss, and its biggest daily loss since March 22nd, hitting its lowest level in 22 months at $1.1140, after weak data on the confidence in the German business climate.

The Munich-based Institute for Economic Research (IFO) showed a deteriorating in the German business sentiment in April, accompanied by global trade tensions and weak domestic demand.

The data has reinforced the signs that indicates a weakness in the European economy, where the focus of investors is currently on the main economic factors of the EU in comparison with the economic activities in the United States, where the US economy still performs better than expected during the first quarter of this year.

As the weakness of the European economy against its US counterpart, could lead to a widening gap again between the course of the monetary policy in Europe and the United States in the near future.

Which is expected to push the European Central Bank to take some stimulus measures during the upcoming meetings to face the sharp slowdown in the economic activity in the eurozone.