Euro Continues to Drop on Future Expectations

Euro continues its downward slide against major currencies as future expectations weigh on the 19-nation currency. Concerns about the economy are paramount, and many expect the ECB to announce another round of easing at its next meeting.

Forex traders are already preparing for another round of easing from the ECB policymakers. The next meeting is expected to bring more asset purchases in an attempt to bolster the flagging economy. German industrial orders fell by more than expected, and much of the eurozone economy follows Germany’s lead. Other economic news in the eurozone hasn’t been better, and that has led to speculation that the ECB needs to do more. And, of course, concerns about Greece and the upcoming election remain in many minds.
The euro’s situation is in start contrast to what’s happening with the US dollar. The recent rhetoric out of the Fed has many believing that an interest rate hike is just around the corning, and that is helping the greenback. For now, the policy divergence is resulting in lows not seen by the euro for nine years.
At 11:32 GMT EUR/USD is down to 1.1773 from the open at 1.1833. EUR/GBP is also lower, falling to 0.7814 from the open at 0.7832. EUR/JPY is down to 141.0620 from the open at 140.9960.

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