EUR/USD Moves Below 1.34 Slowdown Signs

The euro touched a two-week low against the dollar on signs the region’s economy is slowing amid political uncertainty in Italy and Spain.

The 17-nation currency declined against the yen for a fourth day before data forecast to show industrial production in France fell and with European finance chiefs set to meet in Brussels to discuss aid to Cyprus and Greece. The yen remained higher after snapping 12 weeks of declines. Prime Minister Taro Aso said the currency has been depreciating too rapidly before Group of 20 finance chiefs meet this week.

“There’s negative momentum behind the euro at the moment,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp. “You have more European risks apparent than a month ago.”


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