The common currency of the European Union lost value for a third-straight trading session against the U.S. dollar amid conjecture that the regional economy of the 17-nation bloc shrank during the first quarter of the year, Bloomberg reports.
But the 17-nation currency was hovering against the Japanese yen as euro zone finance ministers prepared for Monday meetings in Brussels.
"We see the Fed still tapering their bond purchases at some stage in the second half of the year, something that should bolster the dollar more widely," currency strategist John Horner with Deutsche Bank AG in Sydney told the news service on Monday. "The U.S. economic recovery is very much entrenched at this point, and we don't need that sort of stimulus for any longer."
Gross domestic product of the region fell 0.1 percent during the first three months of this year, according to the median estimate of 39 Bloomberg-polled economists.
The euro also endured pressure after policy maker Ignazio Visco with the European Central Bank said the bank's deposit rate is prone to be slashed to negative should the economy require spurring, according to Reuters.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.