Euro continues its decline for the third day in a row against the US dollar, with losses of 0.1% at approximately 11:30 a.m. GMT.
The euro is also heading to reverse the gains it recorded against the pound sterling during the previous three sessions, with losses of 0.21% at the same time.
The euro’s losses today came as the contraction in economic activities accelerated across the region, this time in construction activities and retail sales.
The weak figures for the region’s economy also halted the euro’s gains against the pound today, which is benefiting from the smaller-than-expected and slower contraction in four months of construction activities in the United Kingdom.
Today, we witnessed the January reading of the construction PMIs for the Eurozone countries issued by HCOB/S&P Global. Reports indicated that weak demand conditions led to the largest decline in construction activities since 2020. While the largest decline was in the housing sector, we also witnessed a sharper decline in commercial construction and new businesses. On the other hand, Italy recorded more growth in construction activities, but at a slower pace than last December.
Retail sales in the Eurozone also recorded a worse than expected reflection from the previous reading, with a contraction of 1.1% last December on a monthly basis, which represents the fastest pace since the reading of December of the year 2022. As for an annual basis, sales contracted by 0.8%, which was slightly less. the expected.
On the other hand, sentiment in the UK construction sector reached its highest levels in two years, despite weakness in output and new work in the sector, according to a S&P Global report. While the report indicated that this sector is counting on improved financial conditions and economic prospects for customers to push demand higher.