The shared currency of the European Union lost value on Tuesday against the world's reserve currency as speculation mounted that the European Central Bank is driving toward putting in place additional stimulus policy, according to Bloomberg.
For the fifth-straight month, investor confidence in Germany dropped, which is of concern because Germany is the largest economy in the region. The ECB is likely to implement additional policy as soon as next month, as is the Bundesbank and its leader Jenns Weidmann, who said he is prepared to implement policy to address ongoing challenges.
"Expectations are back at to levels seen in early 2013 and respondents are looking for a rate cut," head of currency strategy Jeremy Stretch with CIBC World Markets told Reuters on Tuesday. "What is now needed for a weaker euro is a push from the U.S. side, with better data likely to lift U.S. yields and the dollar."
The euro edged down roughly 0.3 percent against the U.S. dollar during the Tuesday trade session.
Low inflation is also a topic of concern to the ECB, according to Reuters.
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