ECB President Mario Draghi’s remarks on the euro and the eurozone economy are weighing on the 17-nation currency today. Insisting that monetary policy will continue to accommodate the economic conditions, Draghi’s remarks are weighing on the euro, sending it lower against its major counterparts.
The President of the European Central Bank, Mario Draghi, said earlier that eurozone policymakers stand ready to take action that will boost growth in the eurozone.
With the latest unemployment numbers hitting a record high in the eurozone, and with signs of recession all around, there are concerns about how to get the eurozone economy going again. The ECB recently cut its benchmark from 0.75 per cent to 0.50 per cent. The latest remarks from Draghi indicate that the ECB is ready (and probably expects) to take additional action.
Action to stimulate the economy would likely result in more euro weakness. Indeed, the euro is lower against most of its counterparts today, struggling as other currencies gain the upper hand as the eurozone’s future remains in doubt.
At 15:52 GMT EUR/USD is down to 1.3071 from the open at 1.3123, but still up from the low of 1.3053. EUR/GBP is also lower, down to 0.8412 from the open at 0.8429. EUR/JPY is struggling as well, dropping to 129.8800 from the open at 130.1600.
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