Euro has turned lower today, ahead of the next ECB meeting taking place tomorrow. Even though eurozone inflation is higher, it isn’t meeting expectations, and there is some speculation that policymakers will have to make up for the disappointing showing in December.
Eurozone inflation figures are in, with a year over year rise of 0.2 per cent for the month of December. The news was greeted with mixed results, as Forex traders, analysts and others greeted the idea of inflation with enthusiasm, but still acknowledged that this increase is well below targets.
As a result, euro has turned lower. Many expect that ECB policymakers will need to make up for their lack of stimulus in December. Expectations for something dramatic were dashed after the last ECB meeting, and the thought is that more needs to be done to stimulate the 19-nation economy. That is leading a lower euro.
Also leading to losses for the euro is a general feeling of risk aversion. Global stocks are diving and oil is at its lowest in more than a decade.
At 15:00 GMT EUR/USD is lower, dropping to 1.0903 from the open at 1.0911. EUR/GBP is down to 0.7686 from the open at 0.7696. EUR/JPY is down to 127.3600 from the open at 128.2800.
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