Euro Declines Before ECB Meeting, Retail Sales Report

The euro fell for second day before the European Central Bank meets tomorrow to discuss measures to tackle the region’s debt crisis.

ECB President Mario Draghi told lawmakers in a closed-door session in Brussels this week the bank’s primary mandate compels it to intervene in bond markets to ensure the euro’s survival. The 17-nation currency remained lower versus most of its major counterparts before data forecast to show retail sales declined and services contracted in the euro area. The Australian dollar touched a six-week low after the government reported second- quarter gross domestic product grew less than analysts expected.

“A lot of expectations have been built into the ECB meeting since President Draghi’s comments,” said Yuki Sakasai, a currency strategist at Barclays Plc in New York. “There’s a risk of a disappointment, so the euro may face some downward pressure into the meeting.”

via Bloomberg

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