Euro is mostly lower today, losing ground following the ECB rate decision. With other central banks indicating that they could be on the verge of ending easing programs, the eurozone remains committed to looser monetary policy. That is weighing on the 17-nation currency today.
ECB President Mario Draghi is concerned that raising rates right now, or sounding to optimistic about the eurozone’s recent economic improvements, could cause credit market problems. With credit still tight in the eurozone, the priority is keeping things as liquid as possible, and that means maintaing loose monetary policy, even as other central banks consider tightening a bit.
Also weighing on the euro is the reality of the situation. There are some that think Greece will need more aid in 2014, and that is prompting thoughts that the euro crisis just won’t end. With the European Central Bank pledged to save the euro, there are concerns about how much the periphery will drag on the 17-nation currency before something finally breaks.
For now, the euro is weaker across the board, and traders are looking for better improvements to the economy.
At 12:43 GMT EUR/USD is down to 1.3172 from the open at 1.3207. EUR/GBP is down to 0.8419 from the open at 0.8453. EUR/JPY is down to 131.5280 from the open at 131.7250.
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