The Euro has weakened against a number of its most traded peers after Eurozone retail sales declined in February as declines in France countered gains in Spain and Germany.
According to the Luxembourg based European Union Statistics office (Eurostat), sales in the 17-nation currency bloc fell by 0.3% month on month from January to February. The figure was slightly better than economist predictions of a decline of 0.4%. Year on year retails sales fell by 1.4%.
Trade in French shops was particularly hit, dropping 2.2% between January and February, while sales in Belgium, Slovenia, Slovakia and Finland also fell.
The worst hit year-on-year was Spain, down 9.7%, on a month by month basis Spain fared fairly well as it recorded an increase for month on month sales of 0.6%. Fellow struggler Portugal was down by 5.3%.
The best performing country was Germany, Europe’s largest economy, which saw sales rise by 0.4% after a 3% jump in January.
Yesterday saw the Euro make gains after European Central Bank President Mario Draghi said that the Bank was ‘ready to act’ if the economy deteriorates further.
“Weak economic activity has extended into the early part of the year and a gradual recovery is projected for the second half,” Draghi told a press conference in Frankfurt yesterday after the central bank kept its key interest rate at a record low of 0.75 percent. The outlook “remains subject to downside risks, including even weaker-than-expected domestic demand,” he said.
His comments came after the currency took a hit from data showing that the Euro regions services industry contracted by its largest margin in five-months.
As of 11:15 am
The Euro to Pound Sterling exchange rate is currently trading in the region of 0.8487
The Euro to US Dollar exchange rate is currently trading in the region of 1.2934
The Euro to Australian Dollar exchange rate is currently trading in the region of 1.2408
The Euro to New Zealand Dollar exchange rate is currently trading in the region of 1.5388
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