Euro under pressure from ECB

Published: 9 May at 8 AM Tags: Euro, Dollar,

Comments by President of the European Central Bank, Mario Draghi, about possible monetary easing have hammered the euro. The single currency is licking its wounds at $1.3843 after hitting a high of $1.3992. Draghi is concerned about the strength of the euro and may introduce easing to stem falling inflation.

The dollar also remains under pressure as the Federal Reserve remains dovish. The yen is attracting attention as a safe haven bet as tensions in Ukraine persist. On Thursday pro-Russian separatists voted in favour of an independence referendum.

The dollar is down 0.55 per cent this week against its Japanese rival at 101.615 yen. Upbeat economic data coming out of Australia and its main trading partner China saw the Aussie dollar hit $0.9369, close to an earlier high of $0.9395.

The British pound has eased off an earlier high, even though economic data coming out of the UK remains positive. However, although the Organisation for Economic Co-operation and Development has pushed up its growth forecast for the year to 3.2 per cent from 2.4 per cent the body has warned that the housing market is coming under pressure.

Elsewhere, the New Zealand dollar is flat at $0.8646.