Euro is clinging to some earlier gains — but only just. With the ECB due to make a policy announcement and the European Commission making forecasts that expect to see slower growth, many expect the 19-nation currency to slip more against the US dollar.
So far today, the euro is managing to hold on to some of its recent gains. However, even though EUR/USD has managed to move about the 1.10 level, many expect the increase to be short-lived. Many Forex traders are waiting on Mario Draghi’s statement after the most recent ECB meeting.
While waiting on the statement, Forex traders are mulling over the latest forecast from the European Commission, which calls for growth of 1.8 per cent in 2016, down from previous estimates of 1.9 per cent. The news is expected to influence monetary policy for the 19-nation currency region, and some expect more bond buying and interest rates pushed further into the negative zone.
Paired with the idea that the Federal Reserve will begin raising rates soon, and many expect the euro to attain parity with the dollar.
At 14:14 GMT EUR/USD is up to 1.0881 from the open at 1.0860. EUR/GBP is higher, up to 0.7145 from the open at 0.7059. EUR/JPY is up to 132.4430 from the open at 132.0220.
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