The euro was higher today as European Central Bank members hinted that the bank has options to battle low inflation. The currency reached the highest level since November 2009 against the Japanese yen.
ECB Executive Board member Joerg Asmussen explained that the central bank is ready to take actions against deflation. Regarding prospects for negative interest rates he said:
While Iâd be very careful with such an instrument, I donât want to fundamentally exclude it.
Fundamental reports from Europe were relatively good during the current trading session. The ZEW Indicator of Economic Sentiment for Germany increased from 52.8 in October to 54.6 in November. The index for the whole eurozone rose from 59.1 to 60.2, but was still below analysts’ expectations.
EUR/USD rose from 1.3504 to 1.3537 as of 20:43 GMT today. EUR/GBP advanced from 0.8381 to 0.8395 and EUR/JPY went up from 135.03 to 135.60 following the decline to 134.59.
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