Euro is once again struggling, thanks in large part to speculation that policymakers are moving toward full scale quantitative easing. The announcement could come later this month, and many Forex traders are anticipating it.
On January 22, policymakers at the European Central Bank will meet to discuss further moves for propping up the eurozone’s flagging economy. One of those moves might be all-out quantitative easing. There are rumors that the ECB might initiate a sovereign bond buying program, based on how much each country involved has paid to the ECB.
The speculation is really hitting home with many Forex traders, and the euro is mostly lower today against its major counterparts. Monetary easing is expected to further reduce the euro’s value.
Also of some concern is Greece. The Syriza party leader insists that Greece won’t leave the eurozone if the far-left party wins elections later this month. However, there are some that contend that Greece wouldn’t be such a loss after all, and that cutting the country loose — rather than dealing with more monetary blackmail — would make more sense.
At 12:00 GMT EUR/USD is down to 1.1806 from the open at 1.1852. EUR/GBP is down to 0.7797 from the open at 0.7806. EUR/JPY is up to 140.7600 from the open at 140.1800. EUR/CAD is down to 1.4021 from the open at 1.4026.
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