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EUR/USD Near 3-Month Low at 1.2775

The euro traded 0.1 percent from a three-month low amid speculation the European Central Bank may add to stimulus while the Federal Reserve tightens policy.

Europe’s shared currency remained lower versus the yen before ECB Executive-Board Member Joerg Asmussen speaks today. Asmussen said yesterday the central bank’s policy will remain accommodative for an extended period, reiterating comments by President Mario Draghi. Fed Chairman Ben S. Bernanke speaks today on economic policy as the Dollar Index trades near a three-year high. Australia’s dollar fell after China’s imports unexpectedly fell, damping trade prospects.

“Asmussen’s comments provided another push to euro selling against the dollar,” said Kikuko Takeda, a senior analyst at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “The ECB’s introduction of forward guidance made the divergence of its monetary policy with that of the Fed clear. It’s possible the ECB will cut its refinancing rate this year.”

Bloomberg [1]

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