Investing.com - The euro was lower against the other major currencies on Tuesday, as fresh concerns over the outlook for global growth and uncertainty over Spain and Greece dampened investor demand for the single currency.
During European early afternoon trade, the euro was weaker against the U.S. dollar, with EUR/USD down 0.24% to 1.2936.
Overall market sentiment was hit after the International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it said was an already “slow and bumpy” economic recovery.
Demand for the euro was hit as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Investors also remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.
In testimony to the European Parliament, European Central Bank President Mario Draghi reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
Mr. Draghi also warned that he expected economic activity in the euro zone to remain weak, calling the road ahead long and uphill.
The single currency was down against the pound, with EUR/GBP sliding 0.22% to 0.8073.
Sterling remained under pressure after the IMF said the U.K. economy would contract by 0.4% in 2012 before recovering to 1.1% growth next year, compared to its July forecast for 0.2% growth this year and 1.4% growth in 2013.
Meanwhile, official data showed that manufacturing production in the U.K. fell by 1.1% in August, compared to expectations for a 0.6% drop, while industrial production declined 0.5%, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
The euro was lower against the yen, with EUR/JPY shedding 0.36% to trade at 101.20, but edged higher against the Swiss franc, with EUR/CHF inching up 0.06% to 1.2108.
The shared currency was broadly weaker against the Australian, New Zealand and Canadian dollars, with EUR/AUD down 0.52% to 1.2658, EUR/NZD losing 0.37% to trade at 1.5767 and EUR/CAD falling 0.31% to 1.2629.
The commodity linked dollars remained supported after China moved to inject liquidity into markets earlier Tuesday, fuelling speculation that it may announce more stimulus measures.
Elsewhere Tuesday, finance ministers from the European Union were holding a day of meetings in Brussels, while German Chancellor Angela Merkel was in Athens for talks with Greek political leaders.
During European early afternoon trade, the euro was weaker against the U.S. dollar, with EUR/USD down 0.24% to 1.2936.
Overall market sentiment was hit after the International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it said was an already “slow and bumpy” economic recovery.
Demand for the euro was hit as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Investors also remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.
In testimony to the European Parliament, European Central Bank President Mario Draghi reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
Mr. Draghi also warned that he expected economic activity in the euro zone to remain weak, calling the road ahead long and uphill.
The single currency was down against the pound, with EUR/GBP sliding 0.22% to 0.8073.
Sterling remained under pressure after the IMF said the U.K. economy would contract by 0.4% in 2012 before recovering to 1.1% growth next year, compared to its July forecast for 0.2% growth this year and 1.4% growth in 2013.
Meanwhile, official data showed that manufacturing production in the U.K. fell by 1.1% in August, compared to expectations for a 0.6% drop, while industrial production declined 0.5%, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
The euro was lower against the yen, with EUR/JPY shedding 0.36% to trade at 101.20, but edged higher against the Swiss franc, with EUR/CHF inching up 0.06% to 1.2108.
The shared currency was broadly weaker against the Australian, New Zealand and Canadian dollars, with EUR/AUD down 0.52% to 1.2658, EUR/NZD losing 0.37% to trade at 1.5767 and EUR/CAD falling 0.31% to 1.2629.
The commodity linked dollars remained supported after China moved to inject liquidity into markets earlier Tuesday, fuelling speculation that it may announce more stimulus measures.
Elsewhere Tuesday, finance ministers from the European Union were holding a day of meetings in Brussels, while German Chancellor Angela Merkel was in Athens for talks with Greek political leaders.