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Euro Falls as Investors Speculate that ECB will Reduce Rates Further

By DailyForex.com
Today in London, the Euro fell to its lowest level in 3 months against the USD on speculation that the President of the European Central Bank is likely to indicate that interest rate in the Euro Zone will keep reducing.

The Euro was also close to a fourth weekly decline against the USD, following a report by the Statistics Office that also confirmed that Europe’s economy shrank last quarter, the most decline in the last quarter over the past 13 years. The JPY dropped to a 4-month low, close to 100 Yen to the U.S. Dollar, after a report confirmed that Japanese companies cut spending at the fastest rate over the past decade. The Pound Sterling changed slightly against the USD ahead of the Bank of England’s interest rate decision today.

The Euro fell against the USD, and as at 10:02 GMT in London, the currency was trading at $1.2564, compared to $1.2661 traded on the New York market yesterday. The Euro traded at 124.86 versus the Japanese Yen. Against the USD, the Japanese Yen fell to a low of 99.68 Yen, the weakest level in almost three months, before strengthening to 99.39 yen, from 99.15 Yen yesterday.

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