Euro is trading mixed today, heading lower against the dollar by gaining against the yen and pound. For the most part, European policymakers are waiting for the Fed to make a move. As long as the Federal Reserve doesn’t raise rates, moves by the European Central Bank are less effective.
It’s been a strange a few weeks for the euro. Even though more quantitative easing has been announced, and even though ECB president Mario Draghi is promising large measures, the euro continues to be relatively strong.
While the euro zone that has seen some success with its economy, there are still plenty of weaknesses. The economy is not growing like policymakers want to see, and they are looking for ways to stimulate growth. Unfortunately, many of the measures ingested have been less than effective.
In fact, the euro has retained much of its strength against the dollar. Even though they euro is lower today, it is not as low as many had predicted. Euro is also maintaining strength against the pound and yen. Until the Fed starts raising rates, the Euro is likely to be uncharacteristically strong.
At 14:35 GMT EUR/USD is down to 1.1067 from the open at 1.1109. EUR/GBP is up to 0.7856 from the open at 0.7851. EUR/JPY is up to 125.8550 from the open at 125.7130.
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