Euro slides to lowest since 2005

The euro dipped to the lowest level against the dollar since 2005 on Thursday, after weak German manufacturing data strengthened the case for the European Central Bank to launch more stimulus measures.

The shared currency EURUSD, -0.54% briefly slid to $1.1792, the lowest since late December, 2005. At the latest, the euro traded at $1.803, down from $1.183 late Wednesday.

The euro has been steadily falling recently, and was Thursday sent lower after data showed German manufacturing orders fell sharply in November. The weak reading comes a day after a Eurostat report showed the eurozone slipped into the negative inflation zone in December, fueling fears that the region is facing a period of deflation, which could derail the fragile economic recovery. The inflation number was seen as pushing the ECB closer to launch full-scale quantitative easing, possibly as soon as its Jan. 22 meeting.

Angus Campbell, senior analyst at FxPro said in a note that the latest reading on consumer prices “put a swift end to a meager attempt by EURUSD to rebound.”

 Varchev Traders

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