A slew of weak economic data has pushed the Euro to new lows this morning: German GDP for Q4 was out at 0.0% vs. a forecast of 0.2%. Effectively the German economy, the economic engine of Europe, shrank 5% in 2009. The Q4 Flash GDP for the Eurozone (0.1% actual vs. 0.4% expected) did not help investor confidence either, nor did E-Z Industrial Production for December which missed the mark heavily at -1.7%. The French economy did surprise to the upside however, expanding by 0.6% last quarter. EURUSD has dropped to nine-month lows near 1.3550,and EURJPY is struggling with support below 122.00. So despite vague commitments of EU and IMF support for Greece, the EUR sell-off continues for the third month running.
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