The common currency edged lower on Monday and is extending last week’s decline, the largest weekly fall since early June, as investors ponder the next move by the European Central Bank. Since the beginning of the year, the Euro has gained about 11%; the best performer among G10 currencies. However, last week, the EUR/USD lost 0.5%, and thus far into the new week, the common currency has dropped another 0.17%. Analysts are divided as to whether or not Mario Draghi, the ECB President, will drop hints on a policy shift at this week’s Jackson Holy symposium of central bankers.
As reported at 10:57 am (BST) in London, the EUR/USD was trading at $1.1737, down 0.20%; the pair earlier hit a trough of $1.17308 while the session peak is currently at $1.17690. The EUR/GBP is also lower at 0.91169 Pence, down 0.25% and moving off today’s low which was set at 0.91115 Pence.
Mario Draghi in Spotlight
While markets are wary that Mario Draghi might surprise, as he has in the past, some traders are playing it safe and refuse to chase the Euro higher, preferring instead to buy at the EUR/USD lows. With a decided absence this week of any market moving data points for the Euro, the Jackson Hole meeting will be closely scrutinized. Ahead of Jackson Hole, Mario Draghi will deliver the keynote speech at Wednesday’s Meeting of Economic Sciences in Lindau, Germany.