Economic data for the euro zone showed that the region's business climate index fell by 0.04 points in December to fall its lowest level in more than six years.
The Eurozone Business Climate Index slumped to -0.25 in the last month of 2019, according to European Commission data released today. The index's year-end level is the lowest since August 2013.
It should be noted that the current levels of the Eurozone business climate index were well below market expectations, most of which were centered around -0.16, based on the sharp decline in managers' assessments of previous production as well as the decline in final product inventories.
On the other hand, business confidence in the Eurozone averaged 0 from 1985 to 2019, reaching an all-time high of 1.64 points in January 2018, while it reached a low of -3.32 points in March 2009.
The data comes amid rising tensions in the Middle East, following U.S. air strikes that killed a prominent Iranian general, causing Iran's response with a missile strike on some U.S. bases in Iraq.
The situation in the Middle East remains largely hazy, increasing the likelihood that global markets will remain in a state of constant volatility until the situation between the two parties is resolved.
The EURUSD pair extended
its drop for a second straight session at 1.1158, the lowest level since
December 27, 2019.