As markets anxiously await the decision from the European Union regarding its Quantitative Easing program, the common currency came under heavy pressure and was trading close to a 3-month trough versus the US dollar. While analysts are forecasting that the official statement will maintain the status quo, FX traders want to know what kind of clarity the president of the ECB, Mario Draghi, can offer. Currently, the consensus is calling for a December tapering, however the ECB’s own downgraded growth forecasts have raised investors’ uncertainty.
As reported at 10:37 am (BST) in London, the EUR/USD was trading at $1.0968, a loss of 0.05% for the Euro. Earlier, the pair had hit a session trough at $1.0950, a level not seen since late June, while the daily peak was established at $1.0980. The EUR/GBP was up 0.16% to trade at 0.8942 Pence, moving close the session high of 0.8950 Pence.
UK Retail Sales Figures Pressure Sterling
The Pound is coming under pressure after the latest economic news showed a disappointing decline in September’s retail sales figures, which fell on both a monthly and annual basis and failed to meet analysts’ expectations. Like the US economy, the UK economy is quite dependent upon its consumer base for growth and a disappointment suggests possible wariness on the part of the consumer sector. Analysts point out, however, that the fall could be a factor of unusually warm weather which dampened enthusiasm for fall shopping. The GBP/USD was trading at $1.2265, down 0.18%; the pair’s daily range was from a trough of $1.2249 to a peak of $1.2298.