Euro Struggles Ahead of ECB Meeting Later this Week

Euro is struggling today, heading mostly lower against major counterparts ahead of an ECB meeting scheduled for later this week. Expectations that Mario Draghi will try to “talk the euro down” are high.

Euro has been exhibiting more strength than expected lately, gaining ground as concerns about the US dollar and other major currencies rise. However, right now the 19-nation currency is heading lower, thanks in large part to expectations for more stimulus in the eurozone.
Many expect that ECB president Mario Draghi will try to talk the euro down at the conclusion of the policy meeting later this week, but most Forex traders expect that no actual move toward more stimulus will occur until closer to the end of the year.
Concerns that the euro has been strong enough to slow economic recovery in the eurozone are at the front of policymakers’ minds and there has been much hand-wringing over the question of how to stop recent euro strength and turn it back to weakness in the name of economic stimulus.
At 13:55 GMT EUR/USD is lower, dropping to 1.1324 from the open at 1.1360. EUR/GBP is also down, falling to 0.7315 from the open at 0.7355. EUR/JPY is down to 135.2400 from the open at 135.6300.

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