The euro may have had a nightmarish showing last week, posting its lowest value in over a year when benchmarked against the U.S. dollar, but it's now on the rebound. According to The Wall Street Journal, the continental currency recovered Monday to show a modest increase from $1.3487 to $1.3512 in North American trade that ended late Friday.
Last week, the currency slid dramatically – 2.3 percent, its biggest fall since the week ending July 6, 2012. It's now trending back in the right direction.
The European Central Bank, the central bank for the continent's most prevalent currency, may still need to do more to fight deflationary pressures. Michala Marcussen, global head of economics at Société Générale, believes that the bank will need to consider serious action when it meets this Thursday.
"Banned from [quantitative easing], we see a fixed-rate long-term refinance operation as the best tool at the ECB's disposal," Marcussen told the news source. "This would have the ability to cement a commitment to low interest rates for an extended period of time, helping on both the currency and bond-market front."
Analysts at RBC Capital Markets expect monetary policy to remain unchanged until another long-term refinancing operation is unveiled next year, the Journal reported.
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