Euro is finally pulling back against many of its other currencies, dropping as Forex traders consider that the ECB will need to make a move soon.
Euro has been heading higher in recent days, gaining ground in spite of uncertainty in the market and other issues that would normally be considered euro-negative.
Now, though, the 19-nation currency is finally losing ground against its major counterparts. The data out of Europe is less than encouraging, and that is leading to speculation that policymakers at the European Central Bank will need to make a move quite soon in order to spur economic growth.
For now, inflation is well below the ECB’s stated target, and ECB President Mario Draghi is making noise about how policymakers need to act quickly. Some Forex traders are wary of these assertions, though, after the disappointing moves last December. This time, though, there is an expectation that policymakers will follow through, and the euro is heading lower as a result. Profit taking is probably making its contribution as well.
At 14:56 GMT EUR/USD is down to 1.1236 from the open at 1.1294. EUR/GBP is also lower, falling to 0.7762 from the open at 0.7810. EUR/JPY is dropping down as well, moving to 128.9480 from the open at 129.9080.
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