EUR/USD at 1.2370 on Chance of More ECB Action

The euro flirted with a two-year trough against the dollar early on Monday and was broadly weaker as investors gave the common currency a wide berth on prospects of more easing from the European Central Bank.

ECB President Mario Draghi on Friday threw the door wide open for more drastic measures as he painted a bleak picture of the state of the 18 countries in the euro bloc, stressing that “excessively low” inflation had to be raised quickly.

Euro bears were swift to react to his comments on Friday, knocking the currency to a low of $1.2375 from a session high of $1.2569. Selling continued in Asia on Monday, with the euro slipping towards $1.2359, just a whisker away from a two-year low of $1.2358 plumbed earlier in the month.

CNBC

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