Eurozone policymakers are indicating that more easing could be in the future. An ECB meeting is scheduled for next week, and the odds that even looser monetary policy is coming are higher than ever.
Comments made by Benoit Coeure in recent days are being taken as an indication that the ECB is truly getting ready to move forward with more monetary easing. Couere pointed out that many banks have overcome negative interest rates in the past. He also commented that the ECB’s price stability policies have led to bank profitability.
His assertions are being seen by many as a clue that the ECB is really ready to take drastic steps to weaken the euro in an attempt to boost the economy of the eurozone. With the recent economic data indicating that the economy remains weak, and worries that a Brexit could impact the eurozone economy further, many think that now is the time for looser monetary policy.
These expectations are weighing on the euro, and ensuring that it is weaker against its major counterparts.
At 15:01 GMT EUR/USD is lower, dropping to 1.0839 from the open at 1.0867. EUR/GBP is down to 0.7727 from the open at 0.7787. EUR/JPY is down to 123.4680 from the open at 123.7400.
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