EUR/USD Hits 9 Year Low Awaiting NFP

The euro hit a fresh nine-year low against the U.S. dollar on Thursday, taking it close to its starting point in 1999 when the single currency was launched in 11 European countries.

The single currency fell as low as $1.17625 on Thursday, its lowest since December 2005 and dangerously close to the $1.1747 level at which it traded at its launch in January 16 years ago.

The decline came as more weak economic data from the euro zone piqued hopes the European Central Bank (ECB) will implement further aggressive stimulus measures after it meets this month.

German factory orders data on Thursday morning showed a sharp monthly fall in November, with new orders down 2.4 percent. This, coupled with the consistent rise in the dollar, pushed the bloc’s currency lower.

Meanwhile, data from the euro zone on Wednesday showed the currency union’s inflation rate fell into negative territory in December for the first time since 2009, adding to pressure on the ECB to launch a U.S. Federal-Reserve-style bond-buying program.

via CNBC

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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