👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

ECB Attempts To Verbally Devalue The Euro

Published 04/15/2014, 01:48 AM
Updated 05/14/2017, 06:45 AM

The euro fell slightly as the European Central Bank worked to verbally devalue the currency after last week saw it rise past $1.39.

The common currency traded at $1.3855 following Saturday's news conference with ECB President Mario Draghi.

Reuters reported that Draghi warned bullish investors that the bank will be forced to ease further at May's meeting if the single currency continues to gain strength.

Following Draghi's comments this weekend, ECB policy member Christian Noyer agreed on Monday by saying that more accommodation would be needed for a stronger euro.

The central bankers' comments mark the first signs that the region's central bank is concerned about the direction of the common currency. At the past two policy meetings, the ECB has been reluctant to step in despite falling inflation and a stronger than expected currency.

Many, including the International Monetary Fund and several eurozone policymakers, have been pressuring the ECB to act, but the bank has kept from intervening thus far.

The euro also fell under pressure as the situation in Ukraine escalated and investors looked to safer currencies. On Monday morning, the Ukrainian government told the pro-Russian separatists holding several government buildings that they must disarm by a concrete deadline or the nation will launch a “full scale anti-terrorist operation."

The threat could raise the possibility of further military intervention from Moscow, which in turn would create more tension between Russia and the West.

For now, the conflict's escalation has had little effect on the euro, but should things continue to worsen it will likely sink further.


BY Laura Brodbeck

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.