Eurozone data demonstrates process of deceleration in economy

Baku. 23 August. REPORT.AZ/ The data on Germany and the eurozone published yesterday proved to be disappointing and demonstrating the process of braking, which could be a serious reason for the ECB to leave the current monetary policy course unchanged, or at least to go only to another reduction in the volume of government bonds redemption as part of the quantitative Mitigation.

Report informs citing the Investing.ru, according to information, index of economic sentiment in Germany from ZEW in August fell to 10 points with the forecast of a decrease to 15 points against the July value of 17.5 points. The data for the euro area also showed a significant drop to 29.3 points against the expected decline to 34.2 points and its value a month earlier at 35.5 points.

The figures presented are indeed indicative and can not be ignored by the ECB. The reason for this dynamics analysts see in the strong growth of the single European currency, which, for example, in a pair with the US dollar added more than 10% since the beginning of the year. The growth of the euro began to prevent European commodity producers from successfully competing in world markets.

Notably, on August 25, ECB President Mario Draghi is expected to deliver a speech at the Jackson Hole summit, where he is likely to announce continuation of the monetary expansion policy or, at best, to reduce its volume. This will reduce the value of the euro.