Euro Steady Ahead Of Fed Speakers
The euro traded at $1.38 4:45 GMT on Monday morning as investors re-calibrated expectations for the US Federal Reserve's future plans after a confusing address from Fed Chair Janet Yellen last week.
Last week the Federal Reserve elected to continue with its tapering schedule by reducing its asset purchase program by another $10 million. However, at the close of the meeting Yellen insinuated that the bank was planning to lower interest rates sooner than expected. Her speech surprised markets and will likely keep them guessing this week.
With economic data for the US relatively thin this week, investors will focus on several Fed officials who are set to speak later in the week. Many are wondering if the central bankers will follow along Yellen's lines or try to distance themselves from last week's comments.
The euro has been riding high on the dollar's uncertainty, but gains were capped by rising tension between the West and Russia over the annexation of Crimea. Reuters reported that the Group of Seven is set to meet later on Monday in an emergency meeting to discuss how to impose further pressure on Russia.
The US and Europe have both enacted economic sanctions on Moscow, but many are worried about the cost of the sanctions on the eurozone where trading ties with Russia are especially important.
Despite Russian President Vladimir Putin's promises that he has no plans to further invade Ukraine, NATO's top military official said Moscow had a “sizeable” number of troops at the Ukrainian border and that the Kremlin might have set its sights on Moldova, another ex-Soviet republic.
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