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Euro lower as markets await for next ECB move

Monday, Oct 19 2015
There are no major data releases both from Eurozone and USA, with ECB Meeting  being the focus of this week.The low inflation rate and the weak growth are the main drivers of the discussion for QE extension. The final September’s inflation in Eurozone released on Friday showed that Eurozone CPI fell by 0.1%. EUR/USD lost ground after ECB policymaker Ewald Nowotny said that it was now “obvious” the bank must do more to stimulate the Euro Zone economy.
 
Recent data showing the Euro Zone economy is slowing and the current strength in the Euro raises pressure on the ECB to follow-through on its promise to expand or extend its trillion-Euro plus asset repurchase program if needed.
 
“We’re clearly missing our target,” ECB Governing Council member Nowotny said on Thursday, “The ECB is using monetary policy instruments available but in my view it’s quite obvious that…additional sets of instruments are necessary.”
 
“These include structural measures…but also on the demand side of the economy and also on the institutional factors of the economy,” Nowotny said. His statements suggest that the ECB’s wait-and-see approach may be insufficient.
 
Euro is currently being trade around 1.1320 area. Pair is likely to find support around 1.13 level and resistance above 1.1370 area. 
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