Euro Loses Ground on Policy Expectations

Euro is losing some ground on policy expectations today. Many expect that the eurozone will continue to struggle for a while, and that is putting the euro at a disadvantage against its other major counterparts.

Euro is struggling today against the dollar and the pound as policy expectations come into sharper focus. There are expectations that the Federal Reserve will start raising interest rates next year, and the Bank of England is also supposed to be getting ready to raise rates. Both the UK economy and the US economy have posted good news recently, while the eurozone continues to struggle. Lower commodity prices on gold and oil aren’t helping the euro cause, either.
The euro is doing better against the yen, though. However, that has more to do with yen weakness, and moves by policymakers in Japan, to keep the yen weak. For the most part, the euro can be expected retain its weakness against many of its major counterparts. There hasn’t been a lot of good news recently, and the ECB has already said it’s prepared to ease further.
At 12:01 GMT EUR/USD is down to 1.2415 from the open at 1.2422. EUR/GBP is down to 0.7824 from the open at 1.7837. EUR/JPY is up to 134.9150 form the open at 142.6500.

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