Euro Falls Due to Slower Growth and Terror Attacks

The euro has weakened in the face of the slower economic growth, and the atrocities in Paris last Friday.

Compared to  the United States dollar, the euro has fallen from just over 1.08 in the early hours of yesterday morning, to 1.072.

The euro has also fallen against the UK pound, the latest figures are that the euro buys 0.705, down from 0.709 yesterday.

Euro Tumbles to Asian Currencies

The news from Asia for the euro was not any better, as it lost value against the Chinese Yuan from just over 6.88 to 6.83 over the past 24 hours.

The Japanese yen also grew stronger to the euro, as the euro fell from 132.5 to 131.8, although there was recovery in the early hours of this morning, where the euro climbed to 132 against the yen.

Against the Australian dollar the euro also struggled, currently the euro buys 1.50, that has fallen from then peak of 1.515 yesterday morning.

Gold and Silver Appreciate Against the Euro

As the conditions for the euro grew unfavourably, gold and silver both climbed in value against the currency.

An ounce of gold has increased by 0.55% compared to the euro, although silver fared better, as an ounce climbed by 0.90%.

Growth Slows Down in the Euro Area

Eurostat  figures revealed that in the euro area, economic growth has slowed to 0.3%, a fall of 0.1% quarter on quarter. For the whole of the European Union, there was no change as growth remained at 0.4%.

There was more positive news with a year on year comparison, as the euro area rose by 1.6%, and 1.9% for the whole of the European Union.

Then United States also reported growth of 0.4% for the third quarter, a fall from 1% growth for the second quarter.

As in the euro area, there was better news year on year, as the economy expanded by 2%.

Romania Post Highest Growth Figures

Romania fared the best in the third quarter compared to the rest of the European Union , as Eurostat found that their economy grew by 1.4%.

Both Poland and Slovakia also reported encouraging figures, with economic growth of 0.9%,

Spain also reported comparatively high growth of 0.8%, even though this was slower than the 1% figure recorded for the second quarter.

Finland’s economy continued to slide, with the worst figures out of all of the member states, with a minus score of 0.6%. This was the third time in the previous four quarters that their economy has slumped into negative figures.

International Trade Surplus for Euro

Then first estimate of euro area exports to the rest of the world was EUR 173.4 billion, with imports totalling EUR 152.8 billion.

As a result, the euro areas has a trade surplus of EUR 20.5 billion on a global scale.

This was a year on year increase of EUR 17.4 billion. Intra-euro area trade rose to €148.9 bn in September 2015, up by 2% compared with September 2014.

In the wake of the terror attacks in France, analysts have warned that the euro may suffer if the tourism industry is effected by the horrific events last Friday.