The euro was one of the strongest major currencies on Monday after the European Commission published updated economic forecasts that showed the Euro-zone may expand 0.2 percent in Q3 and 0.1 percent in Q4 after contracting 0.1 percent in Q2. However, the European Commission’s full year forecast for GDP to fall by 4 percent did not change from their May estimates. The latest release of industrial production for the region doesn’t necessarily back these projections up, though, as output fell for the second straight month in July, this time by 0.3 percent, while the annual rate rose to -15.9 percent from -16.7 percent. Despite other signs of improvement in the manufacturing sector, the data suggests that export demand remains fairly lackluster.
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