EUR/USD Drops Below 1.07 on Paris, Policy Divergence

Euro continues to fall against its major counterparts as more analysts and traders expect to see additional easing from the ECB. Also weighing on the 19-nation currency is the aftermath of the attacks in Paris.

EUR/USD is heading lower today, dropping below the 1.07 level. There is speculation that parity might not be too far off for the euro and the dollar. The 19-nation currency is also struggling against its other major counterparts. Euro is lower against the pound and the yen as well.

Mario Draghi and the ECB continue to send signals for more easing. These signals are likely to be stronger in the wake of the terrorist attacks in Paris. The expected easing for the euro stands in contrast to expectations for a Fed rate hike. Indeed, many Forex traders and analysts are increasingly sanguine about a hike for US rates next month.

With the policy divergence and concerns about what’s next for the eurozone, it’s little surprise that the euro continues to struggle in Forex trading on the currency market.

At 14:48 GMT EUR/USD is down to 1.0672 from the open at 1.0685. EUR/GBP is down to 0.7010 from the open at 0.7027. EUR/JPY is down to 131.5840 from the open at 131.6420.

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