The Euro managed to edge higher, helped along by the express concerns of the governor of the central bank of Italy who reportedly said that he was worried about the pace of the Quantitative Easing scheme that was launched last week by the European Central Bank. He pointed out that the common currency had weakened much quicker than the council had anticipated it would since the ECB began dropping hints of potential easing and now the concern was that the scheme would weaken the Euro too much, overshooting the ECB’s intended goal.
His comments had initially pushed the Euro higher by about 0.3% versus the US Dollar; however as of 10:09 am (GMT), the EUR/USD pair is now trading higher at $105.45, a gain of 0.46%. Since May 2014, the Euro has lost about 25% of its worth relative to the US Dollar. The EUR/JPY was trading at 127.9215 Yen, up 0.41%.
Central Banks Take Focus
Ahead for this week are the monetary policy meetings of several major central banks, including Switzerland, which analysts believe could hint at another rate cut. The EUR/CHF is currently higher at 1.0583 Swiss Francs, a gain of 0.19% for the Euro. Likewise, analysts believe Sweden’s central bank is likely to embark on additional loosening.