FOREX Report: Euro EUR

Eurozone Economic Information

Central Bank: European Central Bank

The European Central Bank has been lowering the interest rate on its main refinancing operations since January
2009, it is currently 1%.

Fixed rate tenders

With effect from
Fixed rate %

2009 13 May. 1.00

8 Apr. 1.25
11 Mar. 1.50
21 Jan. 2.00

Currency: Euro (EUR or €)

The Eurozone includes members of the European Union that use the euro as their common currency. Considered a
major global reserve currency, second to the U.S. dollar, the euro was formally put into circulation in 2002. As a
stable currency from one of the world's largest trading powers, the euro has become an alternative currency to
investors and countries to move into when confidence in the U.S. economy declines.

Key Indicators Data Period As of

Consumer Price 0.50% YoY 12/09

Index (CPI)

Gross Domestic (210.00)% YoY 03/10

Product (GDP)

Current Account 1.9B DEC 02/10

Balance (BoP)

Official Foreign 468.73B na 02/10

Reserves

The 15 European Union member states using the euro

• Austria
• Belgium
• Cyprus
• Finland
• France
• Germany
• Greece
• Ireland
• Italy
• Luxemborg

• Malta
• Netherlands
• Portugal
• Slovenia
• Spain

A few factors to consider when evaluating the euro:

Reasons to consider

• In an effort to revitalize the struggling economy, the European Central Bank slashed interest rates in May
2009 to just 1.0 percent and plans to buy up to 60 billion euros of covered bonds.
• As of August 2009, the new export orders index for the manufacturing sector rose to 48.2 from 43.7
reported in June 2009. This is the highest-level increase since June 2008.

Risk factors to consider

• The euro zone economy contracted 2.5 percent in the first quarter of 2009.
• Concerns over inflation could compel the ECB to lower interest rates and in turn depreciate the value of
the euro.
• Unemployment in the euro zone reached a 10-year high of 9.5 percent in May 2009.
• July 2009 marks the 14th month that Purchasing Managers Index (PMI) has been below the 50.0 mark that
divides growth from contraction.

Reference

Everbank
Global Rates
European Central Bank