Euro is a little lower today, thanks in large part to expectations that the European Central Bank will actually have to take steps to stimulate the eurozone economy this week. However, the losses to the euro are limited, as some of these expectations have been priced in, and so far the ECB has failed to deliver on its threats.
Later this week, the European Central Bank will announce its next policy moves. Policymakers like ECB President Mario Draghi have been warning that sluggish economic data means that drastic measures will have to be taken to boost the eurozone economy. Expectations that the ECB will have to do something is leading to a slightly lower euro to start this week.
However, euro weakness is limited, as past warnings have largely been proved inaccurate. The ECB hasn’t really followed through on its threats to take drastic action, so each attempt to talk the euro down is less effective. If the ECB doesn’t put its money where its mouth is later this week, the current weakness in the euro could disappear pretty quickly.
At 15:58 GMT EUR/USD is down to 1.0984 from the open at 1.0992. EUR/GBP is barely lower, dropping down to 0.7730 from the open at 0.7731. EUR/JPY is down to 124.6860 from the open at 125.2720.
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