Euro is mostly lower today, struggling as ECB expectations keep the 17-nation currency down. The currently-low rates are expected to continue, with the announcement coming later this week.
All eyes are on central banks this week as Forex traders await decisions and statements from policymakers. One of the banks that will be spotlighted this week is the European Central Bank.
However, expectations for the ECB are that things will remain the same. ECB President Mario Draghi has indicated that he thinks that there will be an extended period for the interest rate to remain at 0.5 per cent.
Even though there have been some signs of economic improvement in the 17-nation eurozone, there are still worries about the situation. Greece recently announced that it might have to sell some of its assets to meet bailout requirements, and there are other periphery countries that aren’t out of the woods yet. Plus, a recent PMI report indicates that France isn’t doing as well as some of its peers in terms of making improvements.
All of this adds up to enough uncertainty to cause the euro to struggle.
At 12:39 GMT EUR/USD is down to 1.3171 from the open at 1.3191. EUR/GBP is down to 0.8466 from the open at 0.8486. EUR/JPY is higher at 131.0835, up from the open at 131.0500.
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