The Eurozone Economic Confidence Report was released today with a lower rate than expected and below the long-term average. Its current rate stands at 95 compared to August’s 98.4 rating. The sentiment indicator has not been this low since December 2009.
It comes as no surprise the European Central Bank (ECB) is being pressured to lower its main interest rate from 1.5%. Despite the current debt crisis, the ECB recently raised interest rates in July.
The current economic crisis has caused the Euro to be very volatile over the past few weeks. Lowering the interest rate could help the Euro in the long-run, but many are anticipating the Euro to decline in the short-term.
If the Eurozone does lower their interest rate, it could help the Euro long-term, but anticipate the Euro to decline during the short-term.
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