The euro area's business activity unexpectedly contracted this month, causing concerns about the future of Europe's economy. This decline suggests that the European Central Bank may need to implement more aggressive interest-rate cuts to stimulate growth.
The euro has reached its lowest level against the dollar since 2022 due to a decrease in the purchasing managers' index for both service providers and manufacturers. Furthermore, the currency has been under pressure due to political instability in Germany and France, as well as the potential for tariffs under a Donald Trump presidency in the United States.