Euro is weaker today, continuing its difficulties as concerns about the eurozone, and as expectations for a stronger US dollar, weigh on the 18-nation currency. The latest Fed expectations, along with changes to the ECB’s forward guidance, are keeping the euro down today.
After yesterday’s Federal Reserve announcement, which some Forex traders took to mean that US rates would begin rising as early as April 2015, the euro fell to fresh two-week lows. Today, the euro is still struggling as speculation about a stronger dollar, thanks to an earlier than expected end to loose monetary policy, weighs.
It’s also not helping the euro’s cause that the ECB has changed its forward guidance. Instead of using a threshold of 6.5 per cent to determine policy, the ECB has now said that it will look at a variety of factors — and wasn’t too clear about what those factors would be. This has some wondering if there is still more easing to come in the eurozone.
Economic and political concerns continue to dominate in the eurozone, so it’s not surprising to see some weakness for the euro.
At 13:47 GMT EUR/USD is down to 1.3769 from the open at 1.3833. EUR/GBP is down to 0.8347 from the open at 0.8361. EUR/JPY is down to 140.9860 from the open at 141.5425.
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