Euro Begins The Week Below $1.27 With ECB Meeting In Focus
The euro was below $1.27 to begin the week as investors kept a close eye on the eurozone with the European Central Bank’s policy meeting coming up on Thursday.
The common currency traded at $1.2680 at 4:00 GMT as investors wondered how the ECB would respond to the region’s lackluster economic data later in the week.
Despite recent efforts, the ECB has been unsuccessful in reviving the eurozone economy and restoring investor confidence in the region. Bank President Mario Draghi has said the bank is willing carry out a large scale quantitative easing program if need be, but that monetary policy alone is not enough to drive a successful recovery.
Structural reforms across the region remain a problem as public sector spending in struggling economies like France continue to drag on the bloc’s growth.
There has been a lot of pressure on Germany to abandon its strictly balanced budget and help float sinking economies, but the bloc’s largest economy has been resistant to spend without the promise of reform.
Meanwhile, the recent independence referendum in Scotland has reignited the Catalan push for independence from Spain, something that will likely weigh heavily on investor confidence in the region.
The Wall Street Journal reported that Catalan President Artur Mas signed a formal degree over the weekend calling for a referendum on the region’s independence.
Madrid has warned that such a vote would be against the Spanish constitution and would therefore go unrecognized, but Catalan leaders insist that the vote won’t be blocked and have set the date for November 9.
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