ECB Concerned About Euro Strength

The euro dropped to a three-week low of $1.1662 on Thursday after minutes from the European Central Bank’s July policy meeting showed policymakers were worried about a possible overshoot in the euro.

The move put the single currency, already sharply down on the day against the dollar, on track for its biggest daily loss in more than four months.

The minutes showed rate-setters were highly aware of the risk that the euro could threaten the ECB’s efforts to get inflation higher as they decided against any change to their pledge for continued monetary stimulus last month.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
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 Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. 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.