Euro continues to struggle today, mostly due to the fact that the ECB is embracing negative interest rates. With flows heading out of the eurozone, it’s no surprise that the 18-nation currency is down pretty much across the board.
Euro is heading lower right now, slipping as the ECB continues to pursue a policy of weakening the euro. Economic growth has been a thorny problem for the 18-nation eurozone, and the ECB has been trying to figure out how to spur growth. Inflation in the eurozone has been well below the 2.0 per cent target for quite some time, and it’s been a goal to try to change that for quite some time.
While the ECB hasn’t started using asset purchases to weaken the euro, the use of negative interest rates is having its effect. Many traders and investors are looking for yield, and it’s clear that yield is not in the eurozone right now. Euro has been struggling against the US dollar especially lately because of the divergence in policy; many expect things to turnaround for the greenback.
At 13:32 GMT EUR/USD has slipped to 1.3545 from the open at1.3547. EUR/GBP is also lower, dropping to 0.8070 from the open at 0.8084. EUR/JPY is down to 138.1950 from the open at 138.6620.
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