Annualized data out of the euro zone this morning revealed a mildly sluggish growth in private loans issued throughout the region. The data seems to suggest either banks’ unwillingness to lend out money from tight financials, or individuals not pursuing loans out of economic pessimism. Either way, it does not bode well for the euro zone.
Supporting this data was Friday’s publication of the M3 money supply, also presented in an annualized format, which revealed lower than expected growth in the amount of local currency in circulation domestically. A reduction in the amount of private loans issued and slower-than-expected growth in the domestic money supply seems to point towards unwillingness by the European Central Bank (ECB) to loosen its grips on the EUR in an attempt to stabilize the market. Given the weakness felt in EUR values these past few weeks, the move does not seem unjustified.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
