EUR/USD Hits 14 Month Low After Surprise ECB Action
Following unexpected cuts to the European Central Bank’s main policy interest rates the EUR/USD fell 1.6% to its lowest level in 14 months, 1.2920. However, it did climb a bit before the end of the week and closed on Friday at 1.2952.
The Dollar also slid at the end of last week after the US Labor Department reported that few jobs created in August than expected. The Fed is assumed to accelerate its asset purchasing in October in favour of raising interest rates around mid-2015. However, The European Central Bank will step back and take a more measured stance on monetary policy.
As a result the EUR/USD pairing should balance out a bit over the next few days; however, Germany’s report on trade balance due Monday could make a difference.