The euro dropped today as speculations persisted about potential implementation of additional monetary stimulus by the European Central Bank. The economic reports were not helping the matter and the forecasts for the next year were less optimistic.
Spanish unemployment surged by 87,000 in October, exceeding the analysts’ estimate of 31,300 by a wide margin. The forecast for European Union economic growth in 2014 was less optimistic compared to the previous projection. The revision was small (from 1.2 percent to 1.1 percent), but such change was worrying nevertheless.
The ECB will hold monetary policy meeting on November 7. For now, no change to policy is expected, but the recent data added incentive for the central bank to expand its stimulus measures. The euro suffered from such outlook.
EUR/USD dropped from 1.3512 to 1.3471 as of 22:56 GMT today and its daily low was at 1.3448. EUR/JPY went down from 133.24 to 132.73, reaching the low of 132.35 intraday. EUR/GBP sank from 0.8461 to 0.8394, trading near the lowest rate since October 3.
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