Home/FX/Newsfeed

EUR/USD Lower as Deflation to Pressure ECB

Share Print 0

The euro dropped for a fourth day versus the dollar, the longest skid in two months, as consumer prices in the region fell more than economists predicted to strengthen the case for asset purchases by the European Central Bank.

A dollar gauge climbed to the highest since 2005 as a private report showed U.S. companies added more workers than forecast before the Federal Reserve releases minutes of its last meeting amid signs it is moving toward raising interest rates. The 19-nation shared currency reached a nine-year low amid speculation ECB President Mario Draghi will announce a sovereign-bond buying program under the quantitative-easing strategy as soon as this month. Brazil’s real advanced against most major currencies.

“Everybody’s betting on Draghi to need to do something,” Ken Wills, a senior corporate dealer at USForex Inc., said by phone from Toronto. The CPI data “definitely puts the heat on him that he needs to open up quantitative easing to allow sovereigns to be included.”

The euro dropped 0.7 percent to $1.1810 at 9:37 a.m. in New York and touched $1.1809, the weakest level since 2006. The euro gained 0.2 percent versus Japan’s currency to 141.08 yen. It slipped 2.9 percent in the previous three days. The dollar strengthened 0.9 percent to 119.46 yen.

via Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

,
Back to Top