Euro Struggles ahead of ECB Meeting

Euro is struggling against some of its major counterparts ahead of the next ECB meeting. While the euro is higher against the US dollar right now, the 17-nation currency is heading lower against the pound and the yen. With the latest economic data pointing to weakness, it’s not much of a surprise that the euro is struggling.

Eurostat just released data indicating that annual price growth in the eurozone is at 1.7 per cent for March, representing a slowing since February. Concerns about the eurozone remain as the economy continues to show signs of recession.
There is speculation about what might happen at tomorrow’s ECB meeting as well. There is a case for cutting the rate, but some aren’t so sure that Mario Draghi will be prepared to do that. After all, the recent problems in Cyprus reminded everyone that the sovereign debt issue may not be fully resolved. Cutting rates now may mean fewer options later — if they are needed.
For now, the euro remains down against most other majors, with the exception of the dollar, which is lower due to its own economic concerns.
At 15:29 GMT EUR/USD is up to 1.2841 from the open at 1.2819. EUR/GBP is down to 0.8478 from the open at 0.8488. EUR/JPY is down to 119.3465 from the open at 119.7850.

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