Euro is struggling against the US dollar again as talk of quantitative easing continues. With the idea that more money needs to be circulated through the system, and the idea that eurozone rates aren’t heading higher any time soon, it’s little surprise that the euro is down against the dollar.
There is speculation that the European Central Bank will need to keep its bond-buying program in place longer than expected. The ECB continues to try to keep money moving through the eurozone economy in the hopes of creating a stronger situation. However, with the recent Greek elections and concerns about continued quantitative easing, there’s not much to support the euro against the dollar.
Also keeping the 19-nation currency down is the fact that policy divergence with the United States is likely to continue. There was no change in the Fed’s rate last week, but there are expectations that the US will see higher benchmarks before long. This only gives the dollar a bigger edge over the euro.
Euro isn’t falling against all its major counterparts, though. It is higher against the pound.
At 13:35 GMT EUR/USD is down to 1.1145 from the open at 1.1190. EUR/GBP is higher, moving up to 0.7235 from the open at 0.7215. EUR/JPY is down to 133.6500 from the open at 134.8940.
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