The Euro dipped to below the $1.23 level as investors await today’s policy review meeting outcome from the European Central Bank; the EUR/USD pair hasn’t traded at that low price since 2012. Analysts and investors believe that the head of the ECB. Mario Draghi, will be compelled to provide some additional stimulus to restore the Eurozone’s economy and likely will lay out the central bank’s intention at today’s review, with easing to commence early in 2015.
The EUR/USD was trading at $1.2315, recovering from a session and 2-year trough of $1.2295. The EUR/JPY was trading at 147.7350 Yen while the USD/JPY was trading at 119.9460 Yen.
More Abenomics Likely Ahead
In Japan, the media is reporting that the coalition headed by Shinzo Abe is likely to maintain a majority rule in the Japanese Parliament’s lower house, which means that the “Abenomics” mandate is likely to continue and that the existing ultra easy money policy is likely to endure, further weakening the Japanese Yen. The Bank of Japan and the Japanese government have been actively attempting to lift the Japanese economy out of stagflation and many believe that the countries fiscal and monetary policies will need to be even more proactive in order to revive the economy.