Euro Lower on Quantitative Easing Possibility

Euro is lower against most of its major counterparts today, thanks in part to statements from an ECB policymaker. While quantitative easing isn’t quite on the table, officials aren’t ruling it out, and the possibility of QE, along with other measures meant to weaken the euro in the name of stimulus, is weighing on the 18-nation currency.

Earlier, Ewald Nowotny, a policymaker for the ECB and the head of Austria’s central bank, said that quantitative easing wasn’t being ruled out. While he has been known to vote against U.S.-style quantitative easing in the past, Nowotny’s comments indicate that this method of economic stimulus might be on the table if needed.
Nowotny did temper his comments by insisting that current efforts to stimulate the economy would have to be evaluated before going ahead with any new schemes, like quantitative easing. So, for now, things are likely to remain as they are. Long-term slow growth remains a challenge for the eurozone, and concerns about the periphery, particularly Greece are also still impacting the performance of the euro against its major counterparts.
At 10:26 GMT EUR/USD is down to 1.2569 from the open at 1.2614. EUR/GBP is down to 0.7855 from the open at 0.7883. EUR/JPY is up to 140.3000 from the open at 137.7580.

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