Euro Slumps to Fresh 7-Month Low vs. Dollar

The euro slumped on Wednesday and retained its losses during the early Thursday’s trading session, staying near the lowest level since April versus the US dollar. The currency suffered from the outlook for monetary easing from the European Central Bank and risk aversion on the Forex market.
Many market participants speculate that the ECB is going to add stimulus on its December policy meeting. Reuters fueled such speculations, reporting that “the European Central Bank is considering policy options such as whether to stagger charges on banks hoarding cash or to buy more debt.”
Meanwhile, specialists anticipate monetary tightening from the Federal Reserve. The policy divergence creates trading environment that is highly detrimental to the euro.
Additionally, tensions between Turkey and Russia after the incident with the downed Russian warplane create risk aversion, making the eurozone currency even less attractive for FX traders.
EUR/USD fell from 1.0641 to 1.0624 yesterday and remained near that level as of 00:21 GMT today. EUR/GBP was down from 0.7055 to 0.7019 during the Wednesday’s session before trading at 0.7023 during the current session. EUR/JPY traded at about 130.32 after opening at 130.37.

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