After the European Central Bank reported that they were considering corporate bond purchases the common currency Euro edged near to a 1-week low against the U.S. Dollar. Inside sources told media outlets that the ECB may make a decision regarding the corporate bond purchases at the December meeting, and if the decision moves forward, perhaps begin purchases as soon as the first quarter of 2015. That move would further enhance the ECB’s program of buying private sector assets which began earlier this week and is aimed at encouraging business lending in order to spur economic growth.
As reported at 7:06 a.m. (BDT) in London, the EUR/USD was trading at $1.2710, close to yesterday’s low and a loss of about 0.7%. Safe haven demand also eased back which helped to slightly lift the USD/JPY pair which was trading earlier at 107.03 Yen, moving away from yesterday’s trough at 106.25 Yen. The U.S. Dollar Index continues to move away from last week’s 3-week low and is trading at 85.401 .DXY.
U.S. CPI to Draw Focus
Markets will turn their attention to the United States with U.S. Inflation report which is due out later today; though a recent poll of analysts is calling for CPI to remain relatively flat in September at 1.7%, any weakness could raise investors’ speculation that the Federal Reserve might further postpone a rate hike.