Forex Flash: Weaker EZ data matches up with China and the US - BBH

FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that we now have weaker euro zone data to go along with softer China and US outlooks.

They see that this will keep markets on the defensive and even though the euro zone debt crisis is on the back burner for now after Cyprus, the deteriorating growth outlook for the euro zone economies will only make it tougher to address the debt overhang. They write, “For now, the austerians are sticking with the program despite pushback from the US and the IMF. Even the recent discrediting of the Reinhart-Rogoff thesis has not seemed to dent the drive for more austerity.”