Euro Dips Lower As Investors Look To Confirm Draghi's Remarks
The euro stabilized on Monday morning, trading at $1.3763 at 5:15 GMT.
The common currency suffered heavy losses following the European Central Bank’s policy meeting last week and is likely to remain under pressure as most are expecting the bank to make a policy change at next month’s meeting.
Following the ECB’s May meeting on Thursday, bank President Mario Draghi was very direct in saying the bank would be ready to take action in June, causing the common currency to lose nearly 1.7 percent. Opinions are mixed about whether the euro has further to fall. Some analysts believe the common currency could respond negatively to strong US data this week while others think the market will need more confirmation that the ECB is ready to make a policy change.
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Now, investors will be focused on eurozone data for clues about whether or not Draghi will follow through with his remarks next month. Also on the radar this week are several ECB board members who are set to speak, including the bank’s Vice President, Vitor Constancio.
Meanwhile the escalating crisis in Ukraine is also keeping markets uncertain as many worry that the nation is headed for a civil war.
Reuters reported that pro-Russian separatists celebrated a landslide victory in a succession vote on Sunday. The US and the EU will be watching for Russia’s next move as President Vladimir Putin’s calls for the rebels to postpone the vote last week were ignored.
Many saw Putin’s remarks as purely for show, and will be watching to see if he will recognize the results of the referendum.
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