Euro is mixed in Forex trading today, and bulls and bears are facing off, looking at the 1.35 level against the US dollar as an important dividing line. It’s turning into an interesting over/under debate, as well as a debate between those who see the recent ECB decision as an injection of life into the eurozone, and those who think weakness will continue.
Euro is higher against the US dollar and the Canadian dollar right now, but down against the Japanese yen and the UK pound. This mixed performance is the result of speculation about where the euro might go from here. Earlier this month, the European Central Bank cut its refinance rate to 0.15 per cent while cutting its deposit rate to below zero.
This moves makes it more attractive to stop depositing money and start spending it. ECB policymakers, led by Mario Draghi, hope that this move will encourage more money movement through eurozone, boosting the economy, which has been threatening to slip back into recession for months.
While the euro has weakened against the US dollar, the main psychological point is 1.35. The euro has yet to crash through that level, and if the euro can maintain above it, many think the ECB’s move could be a success.
At 13:39 GMT EUR/USD is up to 1.355 form the open at 1.3538. EUR/GBP is down to 0.7975 form the open at 0.7976. EUR/JPY is down to 138.1450 from the open at 138.1685. EUR/CAD is up to 1.4725 from the open at 1.4697.
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