The euro slipped lower against the dollar on Wednesday as concerns over the outlook the global economy continued to weigh on market sentiment one day after the International Monetary Fund cut its forecast for global growth.
On Tuesday, the IMF said it is now forecasting global economic growth of 3.3% this year, down from 3.4% in July and expects growth of 3.8% in 2015, compared to an earlier prediction of 4.0%.EUR/USD touched session lows of 1.2623 and was last down 0.16% to 1.2648.
The fund said Europe was experiencing a "multispeed recovery" and revised down its growth forecasts for Germany, France and Italy saying progress was still "slow and tentative" in many countries.
Earlier Tuesday, a report showing a steep decline in German factory orders in August fuelled fears that the euro zone’s largest economy is falling into a recession.
The weak data added to expectations that the European Central Bank will implement additional stimulus measures in a bid to shore up slowing growth and inflation in the region.
News that a Spanish nurse had become the first person outside West Africa to have contracted the deadly Ebola virus also unsettled markets.
Elsewhere, the euro was slightly lower against the yen, with EUR/JPYslipping 0.13% to 136.79, holding above Tuesday’s one-month lows of 136.54.
Investors were turning their attention to the minutes of the Federal Reserve’s September meeting, due out later in the day, for fresh indications on the future possible direction of U.S. monetary policy.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.14% to 85.88, off Tuesday’s lows of 85.64.
Investing.com
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