Dollar Decline Remains a Headwind Against the Euro

The euro has been one of the main beneficiaries of the US dollar's decline against major currencies, but that is changing. The currency fell to its weakest in a month on Wednesday after data showed growth in Germany and France slowed in the second quarter.

Euro EURUSD, +0.2073%, fell 1% to $1.1331, from $1.1407 on Tuesday night and its lowest level since June 8. Last time it was down 0.7% to $1.1319 against the dollar, down from a 0.6% drop on Tuesday.

The euro is still up more than 12% against the dollar a year ago, but has recently lost momentum as concerns about European weakness resurfaced following strong first-quarter growth data from both countries. countries and their developing economies. We haven't seen this much weakness in Europe since March, said John Hardy, senior currency strategist at Saxo Bank International in Copenhagen, Denmark. ECB] will not be able to do so much.