Euro is struggling a bit on the currency market today, following an expected interest rate decision from the European Central Bank. Concerns about growth in the eurozone continue to weigh on the 18-nation currency, and there isn’t a whole lot that can be done to boost the euro until the economy starts to pick up.
As expected, the European Central Bank kept interest rates steady in the monthly meeting. Following the meeting ECB President Mario Draghi held a press conference to talk about the prospects for the euro. As with last month, Draghi acknowledge that there are still potential downside risks fort he eurozone economy, and that inflation remains below targets.
While Draghi was careful to say that he doesn’t foresee Japan-style deflation in the eurozone, the reality is that economic recovery is happening slowly, and there is still the possibility that more measures to support the economy will be needed later on. He wants to keep options open.
The news is weighing on the euro a bit, especially against the dollar and the pound. The eurozone economy remains in contrast with policies and news out of these other countries.
At 14:24 GMT EUR/USD is down to 1.3572 from the open at 1.3582. EUR/GBP is down to 0.8241 from the open at 0.8255. EUR/JPY is up to 142.3750 from the open at 142.2750.
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