Euro Goes Lower on ECB Bond Purchases & German Business Sentiment

The euro dropped today against its major rivals due to a report that the European Central Bank will expand its bond purchases. Poor economic data from Germany also drove the shared 19-nation currency down.
ECB Executive Board member Benoit Coeure said the central bank would buy more securities in May and June. He explained that the reason for such decision is the “notably lower market liquidity.”
Meanwhile, the ZEW Indicator of Economic Sentiment for Germany tumbled by 11.4 to 41.9 in May. It was the weakest level since December.
On top of all that, concerns about Greece, its debt and the country’s place in the eurozone resurfaced. It is not a surprise that the euro buckled under the weight of all the bad news.
EUR/USD went down from 1.1314 to 1.1147 as of 22:08 GMT today. EUR/GBP dropped from 0.7226 to 0.7185, reaching the daily low of 0.7150. EUR/JPY declined from 135.73 to 134.50.

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