Euro Declines in Correction Following Rally
The euro fell against the dollar and the yen today following the yesterday’s unprecedented rally as the market participant speculate that ECB will have to follow Fed’s money-printing trend.
The European currency rallied yesterday against the U.S. dollar after the Federal Reserve pledged to buy $300 billion in the U. S. Treasury securities, technically stating that it will print those money. The euro advanced by more than 3.4 percent against the greenback yesterday. Today it’s posting a technical correction supported by the expectations that the next statement by the European Central Bank won’t differ much from the Fed’s one.
The currency rose against the pound, which is considered to be a rather weak player on the currency market (it failed to rally at similarly fast pace against the dollar yesterday). The yen gained for the first time in 6 days against the euro today. Analysts believe that there is a great chance for the ECB to follow Fed’s steps and we may see a backward rally on EUR/USD soon — the next monetary policy meeting for Eurozone is scheduled for April 2.
EUR/USD fell from 1.3490 to 1.3476 as of 7:54 GMT today after rallying from 1.3035 to 1.3490 yesterday. EUR/JPY declined from 129.74 to 128.61 and EUR/GBP rose from 0.9442 to 0.9457 today.
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