Euro is lower today, thanks in large part to easing talk. Even though such talk from ECB President Mario Draghi has done little to weaken the euro in the last month, recent comments from policymaker Ewald Nowotny are having an effect today.
Recent gains for the euro are creating an environment in which there are expectations for profit taking and retracement. Euro has been relatively strong from the last three weeks, and that has some Forex traders a little nervous about what’s next.
On top of that, ECB policymaker Ewald Nowotny recently indicated that the central bank needs to look for ways to stimulate a eurozone economy that is seeing slower growth, thanks in part to a wider global slowdown. With suggestions that the ECB could loosen monetary policy further, there are expectations of some weakening for the 19-nation currency.
However, it will be interesting to see how the euro does against the US dollar through the end of the year since the expected Fed rate hike has already largely been priced into the market.
At 12:49 GMT EUR/USD is down to 1.1381 from the open at 1.1474. EUR/GBP is also lower, dropping to 0.7377 from the open at 0.7414. EUR/JPY is down to 135.0280 from the open at 136.3550.
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