Euro Finds Three Month Low, Expected to Slide Further

Euro continues to struggle in Forex trading, with the 18-nation currency hitting a new three month low against the US dollar. The euro has slipped below the 1.3600 level against the US dollar today, even though it has battled back above that mark now, and there are expectations of a deeper slide after next week’s ECB policy meeting.

For the last few weeks, European policymakers, particularly ECB President Mario Draghi, have been saying that they are prepared to take concrete steps meant to inject more credit into the eurozone economy. In order to do this, the ECB policymakers are likely to lower interest rates and take other steps, like perhaps an asset purchase program.
However, some have been holding back a bit, waiting to see if Draghi and others are truly serious. The ECB policy meeting next week will be the chance for them to show that they are truly serious. If these steps are taken, there is a good chance that the euro slide will deepen, and we will see a dramatically lower euro going forward.
At 13:33 GMT EUR/USD is down to 1.3603 from the open at 1.3635, but higher than the session low at 1.3595. EUR/GBP up to 0.8132 from the open at 0.8112. EUR/JPY is down to 138.4000 from the open at 139.0500.

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