Euro Struggles on Easing Expectations

Even though the euro is higher against some of its major counterparts, the 18-nation currency is struggling today. Euro has slipped lower against the US dollar, and is barely holding its own against the UK pound. Expectations that the ECB could ease policy further next week are weighing.

There is speculation, following comments made by Mario Draghi in Jackson Hole, Wyoming over the weekend, that the European Central Bank will move to ease monetary policy further. The ECB has been putting off quantitative easing for months now, but many think that it is inevitable.

Some expect easing to take place as early as next week, when ECB policymakers meet to discuss the direction of the eurozone and set policy. They are unlikely to cut rates further, and that leaves asset purchases and other methods of easing as their options.

Ahead of this possibility, the euro is struggling against some of its major counterparts. Euro has slipped slightly against the dollar, and is down against the yen. Even though the euro has managed to maintain gains against the pound, it is not without effort.

At 12:30 GMT EUR/USD is down to 1.3191 from the open at 1.3192. EUR/GBP is up to 0.7958 from the open at 0.7957. EUR/JPY is down to 137.1340 from the open at 137.2690.

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