Euro Languishes Near Seven-Month Low on Bets ECB to Add Stimulus

The euro fell toward the weakest in seven months against the dollar and yen as investors speculated the European Central Bank will expand stimulus when it meets next week.

The 19-nation currency is heading for its biggest monthly decline against the greenback since March amid a divergence in monetary policy as the Federal Reserve considers raising interest rates for the first time in almost a decade. ECB President Mario Draghi reiterated last week the central bank will do what it must to accelerate inflation. Australia’s dollar declined after business investment fell the most on record.

The euro dropped 0.1 percent to $1.0610 as of 9:22 a.m. London time after sliding to $1.0566 on Wednesday, the lowest since April 14. The single currency slipped 0.3 percent to 130.04 yen after depreciating to 129.78 Wednesday, the weakest since April 28. The dollar fell 0.1 percent to 122.58 yen. U.S. financial markets are shut Thursday for Thanksgiving.

The euro has fallen 3.6 percent versus the dollar this month, the worst-performing Group-of-10 currency after the Danish krone. The yen has declined 1.6 percent.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.