Reduction of German industry drives the euro down
The exchange rate of the euro against the pound has gone down by 0.2% and are currently at £0.878. The change has been caused by the reports of the upcoming reduction of German industrial output.
In February the orders of German factories have reduced from 4.8% to -1.4%. German Economy Ministry has stated, that while the industrial recession in the country has ended by the time the coronavirus has emerged, the market still should expect large reductions in the past and the current months.
The exchange has been further by the statement of the Federation of German Industries. The institution has warned, that the national economy can be reduced by from 3% to 6% in 2020. The anxiety over the EU’s ability to tackle the debts of Spain. Italy and Greece is also driving the exchange rates down.