The euro is pulling back today, dropping after remarks from Vitor Constancio, the Vice President of the European Central Bank. Constancio’s remarks are renewing concerns about the eurozone economy, and reviving speculation that the ECB could take steps to ease monetary policy.
After seeing some gains in recent sessions, the euro is pulling back a bit today. Concerns are on the rise as ECB Vice President Vitor Constancio remarked that the markets missed some of the implications of the forward guidance offered by ECB President Mario Draghi last week. Constancio emphasized that the ECB is still considering policy options and that the markets had missed — or misunderstood — the ECB’s assessment of slack in the eurozone economy.
The news sent the euro heading lower against the US dollar and the Japanese yen, dropping the 18-nation currency to a session low. Constancio said that the ECB still has quantitative easing and interest rate cuts on the table, and that has many concerned that the eurozone isn’t recovering as well as they would like, and renewing the idea that the ECB might have to act in order to get inflation up to its target.
At 13:14 GMT EUR/USD is down to 1.3851 from the open at 1.3876. EUR/GBP is down to 0.8336 from the open at 0.8337. EUR/JPY is down to 143.0460 from the open at 143.3025.
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