Euro Moves As Investors Reevaluate ECB's Policy Decision

The euro lost some momentum on Wednesday after a European Central Bank official commented that the bank will likely remain accommodative over the next couple months. Following last week's announcement that the bank planned to keep its key interest rate unchanged, the euro rose to a two and a half year high against the dollar. However, it lost some of its shine on Wednesday morning and traded at $1.3856 at 5:30 GMT.

reported that ECB Vice President Vito Constancio told the press that the ECB was still willing and able to act through quantitative easing or by lowering interest rates. His comments came shortly after another ECB board member, Sabine Lautenschlaeger gave a similar interview in which he said the bank still had plenty of options to stimulate the eurozone economy if needed.

Meanwhile, the region's finance ministers pressed on to determine the size and scope of the eurozone's single resolution mechanism before lawmakers disperse for elections in May. While negotiations about the mechanism have been difficult as the ministers struggle to agree on a way to finance it, they are all in agreement that a process to wind down failing banks will need to be in place before the ECB begins its bank health checks. The resolution mechanism will be the final piece of the eurozone's banking union project, designed to completely overhaul the region's financial system and prevent another financial crisis from happening in the future. The European Central Bank has already published a 258 page manual detailing its upcoming asset quality review, set to take place between now and August.