Euro Weaker During ECB Week

The euro was weaker across the board during the past trading week as comments from European Central Bank’s President sounded very dovish and included hints at probable addition of monetary stimulus.

The shared 19-nation currency started the week on a weak footing, and its attempts to rally were feeble. But it was on Thursday when things started to look really bearish. While the ECB left interest rates unchanged, the President Mario Draghi sent a strong signal about probability of expanded quantitative easing.

The softness of the euro helped the US dollar to regain some of its strength. This in turn, hurt commodities and commodity currencies.

EUR/USD sank as much as 3 percent from 1.1356 to 1.1011, demonstrating the biggest weekly loss since April. EUR/GBP tumbled 2.2 percent from 0.7356 to 0.7190. EUR/AUD slumped 2.3 percent from 1.5643 to 1.5255 over the week.

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