Euro is mixed today, dropping against the US dollar, even as it gains against the UK pound and Japanese yen. One of the reasons that the euro is struggling against the dollar is the speculation that the ECB will have to implement quantitative easing.
So far, efforts by the ECB to stimulate the (once again) flagging eurozone economy are falling short. The central bank has used negative deposit rates, and other methods to stimulate the economy, to no avail. Efforts to weaken the euro to help encourage the economy haven’t been all that successful, either.
As a result, some speculate that policymakers are ready to do something more drastic. Mario Draghi has said for months that the ECB is willing to do what it takes, and some think that the eurozone is at the point where “what it takes” happens to be quantitative easing.
Many are watching for this week’s ECB announcement to see if QE is on the table in the near future. With the speculation, the 18-nation currency is losing ground to the dollar.
At 10:30 GMT EUR/USD is down to 1.3114 from the open at 1.3129. EUR/GBP is higher, though, gaining to 0.7934 form the open at 0.7905. EUR/JPY is up to 137.6535 from the open at 136.9970.
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