Euro Continues to Drop on Expectations of More Easing

There are expectations of more easing early in the coming year, and that is sending the euro lower today. Expectations that the ECB will have to take more steps to support the eurozone economy are being priced into the market right now.

Years of austerity are taking their toll in the eurozone. While the austerity measures are meant to help eurozone countries get back on track with their balance sheets, the reality is that it has been slowing down the eurozone economy. As a result, the European Central Bank has had to participate in easing measures in an effort to stimulate the economy. These measures weaken the euro against its counterparts.
However, even with the weakening euro, there hasn’t been a lot of success for the eurozone economy. It continues to see difficulties in recovery, and the ECB is expected to try fresh measures next year. The addition of Lithuania isn’t expected to be a lot of help to the eurozone economy, and meanwhile there are concerns about the ability of Germany and France to shore up the rest of the eurozone.
At 11:30 GMT EUR/USD is down to 1.2327 from the open at 1.2342. EUR/GBP is down to 0.7876 form the open at 0.7926. EUR/JPY is down to 146.1200 from the open at 146.4890.

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