The euro wallowed near its weakest level in over 11 years against the dollar on Thursday, as investors waited for the European Central Bank to announce more details of its massive bond-buying programme. The common currency eased 0.1 percent to $1.1065, holding just above Wednesday’s low near $1.1061, which was its lowest level since September 2003.
The ECB, which starts its quantitative easing (QE), or bond-buying, programme worth more than 1 trillion euros this month, is expected to detail the plan later in the day following its policy meeting. The QE scheme’s details might not trigger much reaction in the euro, since the launch of the programme has already been priced in, said Jesper Bargmann, head of trading for Nordea Bank in Singapore.
Still, the divergence in the outlook for monetary policies in the United States and the euro zone is likely to keep the euro under pressure versus the dollar, he said. “I think the dollar may keep strengthening as we wait for the first rate hike in the U.S…. The trend is in place,” Bargmann said.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015