Eurozone Stagnation and Low Confidence Impact Euro
The single European currency did not manage to hold the upward trend appeared on expectations of an informal European leaders summit.
And even a positive statistics relatively higher сonsumer confidence in the Eurozone economy did not manage to support euro in the currency market.
Euro lost 140 points versus the American currency leveling down to 1 dollar 26 cents.
Economists are sure that the Eurozone economy keeps facing problems related to the debt crisis expansion, so euro is to continue its descending motion.
What is more, the Organization for Economic Cooperation and Development downgraded its growth forecast for the European region.
Earlier it was sounded that the annual GDP growth of the Eurozone would reach 0.2% in 2012. Taking into account the current situation, the OECD has cut its outlook to 0.1%.
The report says about a negative impact of high unemployment in Europe and hard financial conditions. Presently, the Eurozone economy has stagnated, but keeping in mind the recent intention of policymakers to boost the upsweep, the rehab may well start in the second half of this year.