The common currency Euro, for the first time since 1999, fell below its launch price versus the U.S. Dollar after Pedro Cruz Villalon, a high ranking court official for the European Court of Justice, said that the European Central Bank’s bond purchasing program was legal and valid under specific conditions. That left wide open the door to more easing by the ECB at its next policy meeting to be held next week. Analysts and investors believe that the ECB will be launching a massive plan of attach to stimulate the struggling Eurozone economy.
As reported at 9:38 a.m. (GMT) in London, the EUR/USD was trading at $1.1728, a loss of 0.3%, lower than the first ever trade in 1999 of $1.174. The EUR/JPY was also down by about 0.90% at and was trading at 137.5550 Yen with safe haven demand boosting appeal of the Japanese Yen.
Commodity Prices Whet Yen Demand
Ongoing and rising global growth concerns have pushed the Japanese currency broadly higher, in fact, with the USD/JPY hitting a 1-month trough at 117.0450 Yen, a loss of about 0.72%. One strategist and an FX research firm in Tokyo confirmed that investors’ focus on commodity prices, and especially plunging Oil, is not providing them with any reason to sell the Yen.