Euro declines to two-week lows on economic recession concerns

Euro declined in European against dollar for third straight session, marking two-week lows amid risk aversion and concerns about global deceleration.

Such ominous slowing down of economic growth would hamper the ECB's policy plans, and hurt euro's standing. 

EUR/USD fell 0.35% to 1.0125, after falling 1% yesterday, the second loss in a row following disappointing Chinese data. 

Global Recession

Earlier US data showed factory orders slowed down sharply in New York to two-year lows, while housing markets declined as well to 2020 lows. 

Chinese data showed the economy slowed down more than expected in July, in turn triggering concerns about global growth prospects this year. 

Growth Risks

Europe continues to face growth risks in regards to its energy crisis and low natural gas supplies from Russia, which will increase pressure on the euro. 

It might force the European Central Bank to slow down its pace of policy tightening compared to the Federal Reserve's, in turn weakening euro against the greenback.