The shared currency of the European Union dipped to its lowest value in more than two months as the trade week began against the world’s reserve currency, according to Bloomberg. The Euro has since recovered and is higher on the day.
Confidence is growing that inflation pressure is growing weaker, which might prompt President Mario Draghi with the European Central Bank to implement steps. Consumer prices advanced 0.7 percent last month after rising 0.8 percent during the month prior, according to data released by the European Union.
“The ECB Governing Council under President Draghi’s tutelage has shown a remarkable alacrity for acting sooner rather than later,” states a client note authored by strategists Peter Schaffrik and James Ashley with Royal Bank of Canada in London, according to Bloomberg. “Consequently, there has to be a considerable risk that the rate cut we have in place for March instead comes as soon as this Thursday.”
Early during the Monday trade session, the 17-nation monetary unit fell to its lowest value since the end of November 2013 against the U.S. dollar.
Analysts are increasingly confident that the ECB will acquire sovereign bonds to cut down on pressure, according to Reuters.
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