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Euro Drops Below 1.3600 Level Against US Dollar

July 8, 2014 at 13:03 by Miranda Marquit

Mixed euro billsEuro has dropped below the 1.3600 level against the US dollar, and is down against other major currencies as well. There is a bit of risk aversion on the Forex market today, as well as speculation that the ECB will have to take further action on stimulus if the euro’s strength remains where it is.

Even with all that has been done by ECB policymakers to weaken the euro and stimulate the eurozone economy, things continue to move along with the euro’s strength. So far, the policymakers in the eurozone have been slow to take the step of quantitative easing, mainly because the goal is price stability and inflation. The goal isn’t necessarily a weaker euro, even though a little more weakness than what has been seen so far would probably help the eurozone economy.

Today, the euro is a little bit lower. However, it’s not much lower. Euro has dropped below the 1.3600 level against the US dollar, but it appears to be trying to move back above that benchmark. Euro is lower against other major counterparts, but not by much. Policy divergence and persistently weak data in the eurozone should be weighing more heavily on the euro, so the strength is somewhat frustrating to policymakers.

At 13:01 GMT EUR/USD is down to 1.3596 from the open at 1.3605. EUR/GBP is down to 0.7941 form the open at 0.7944. EUR/JPY is down to 138.1770 from the open at 138.5740.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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