The euro traded 0.1 percent from the lowest in almost a year before data tomorrow forecast by economists to show weaker regional retail sales and services, boosting the case for additional monetary stimulus.
The euro’s decline against the dollar in the past month is the biggest among 16 major currencies, spurred by prospects the European Central Bank will add to measures that tend to debase the currency. Officials will gather for a policy decision this week. Australia’s dollar held a gain from last month before the Reserve Bank meets today. Russia’s ruble fell to a record yesterday as tensions continued between the nation and Ukraine.
“The European economy is looking really quite soft,” said Emma Lawson, a senior currency strategist at National Australia Bank Ltd. in Sydney. “The outlook for the U.S. has improved somewhat, which allows the U.S. dollar to strengthen a little bit, so that just puts a little bit more downward pressure on the euro.”
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.