The Euro came under pressure as expectations have grown that the European Central Bank may be compelled to enlarge its Quantitative Easing scheme. The ECB’s governing council meets next week to render a policy decision and the latest disappointing inflation report could be the deciding factor. The Japanese Yen was also under some pressure after the various Tankan surveys were released with mixed results, all of which weighed on the safe haven currency.
As reported at 11:55 am (BDT) in London, the EUR/USD was trading at $1.1149, a loss of 0.22% and nearer the low end of the day’s trading band of $1.1135 and $1.1177. The USD/JPY was trading at 120.0850 Yen, a gain of 0.17% while the EUR/JPY was nearly flat at 133.8800 Yen.
More Easing Around the Globe?
Today’s release of PMI data from Asia and Europe, many of which fell below expectations, highlights the growing concern of a global economic slowdown. The Tankan surveys from Japan also stress that the outlook in Japan among large manufacturers remains dismal. These factors will surely come into play next week when several major central banks, including the Reserve Bank of Australia, the Bank of Japan and the Bank of England, render their policy decisions.