The Euro was under some pressure as markets look to this week’s policy meeting at the European Central Bank. Analysts recently polled expect that the ECB will announce that it will be extended the QE scheme, however, the uncertain arises around the amount of monthly asset purchases. There is a difference of opinion as to whether the ECB will scale back the program or hold it steady, or even if it will formally signal a future date for the program’s conclusion. If the ECB does decide to taper the program, the Euro could recover from its recent lows versus the US Dollar.
As reported at 10:27 am (GMT) in London, the EUR/USD was trading at $1.0723, a gain of 0.07%; the pair earlier hit a session low of $1.0708, while the peak was established at $1.0732. The EUR/GBP was higher at 0.8513 Pence, a gain of 0.6752%; the pair’s daily range was from a low of 0.8447 Pence to a peak of 0.8522 Pence.
Yen Recovers after Data
The Dollar lost some ground against the Japanese Yen, despite comments from the Deputy Governor of the Bank of Japan who said that there was no shift of policy away from easing. Kikuo Iwata said they remained committed to asset purchases and rate cuts as ways to revive the stagnant Japanese economy. The USD/JPY was trading at 113.980 Yen, down 0.04%; the pair had hit a low of 113.90 Yen while the high was at 114.39 Yen. The Yen may have been helped by the latest economic data for Japan, namely the Leading Economic Index, showed a rise to 101.0 in October, up from the 100 posted the previous month which had been revised down.