Euro Moves Lower as ECB Members Praise Rate Cuts

Euro is mostly lower again today, dropping against its United States and United Kingdom counterparts, thanks to recent comments from ECB members. With rate cuts being supported as a way to stimulate the economy, the expectation of more easing is weighing on the euro.

There is a lot of support for a weaker euro right now, and that is leading to Forex traders going along with the programme. Ewald Nowotny and Sabine Lautenschlager, both involved with the ECB and monetary policy, expressed their support for the recent rate cut recently. On top of that, IMF Chief Christine Lagarde also shared the sentiment that she supported a weaker euro as a way to boost the economy.
Euro is also lower thanks in part to a change in investor confidence for the eurozone. Investor confidence dropped to -9.8, indicating that there are concerns about the situation. As long as the recovery is slow, there is a good chance that policymakers will attempt to weaken the 18-nation currency in an effort to kickstart the economy.
With rates already low, many are looking to the ECB to embark on other measures.
At 10:27 GMT EUR/USD is is down to 1.2891 from the open at 1.2895. EUR/GBP is down to 0.7996 from the open at 0.8007. EUR/JPY is up to 171.2050 from the open at 170.7675.

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