The shared currency of the European Union fell during trading on Monday, as the euro continued its streak of volatility due to persisting worries on the part of investors about the European Central Bank (ECB).
According to Reuters, expectations for the ECB, which holds its policy meeting on Thursday, have grown since President Mario Draghi noted last week that the bank would enact all necessary measures to save the euro. This stance was mirrored by French President Francois Hollande and German Chancellor Angela Merkel.
Some analysts have noted that the ECB could reactivate its bond-buying program to help Spain and Italy reduce their borrowing costs, but others have noted Germany may remain in opposition to this strategy.
"Traders were in a 'show me' mode with enthusiasm fading over last week's comments by both Mario Draghi and Angela Merkel in support of the euro," Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York, told Reuters.
The Wall Street Journal reports that the recent decline of the euro came following a three-week high for the currency against the American dollar.
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