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Euro lower as markets await for next ECB move

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.
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Euro pushed lower after ECB Nowotny comments

After the EUR/USD initially tested 1.15 handle, it found significant amount of resistance there and pulled back all the way to daily low at 1.1425. The cause behind this retreat is statement by ECB member Nowotny that ECB is clearly missing its inflation target, regardless of its stimulus measure. What needs to be done according to Nowotny is additional set of instruments, including structural tools.
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ECB's Draghi says too early to decide on further stimulus

Risks to Europe's inflation and growth outlook have increased due to the emerging market slowdown but the European Central Bank needs more time before deciding on further stimulus, ECB President Mario Draghi said on Wednesday. Draghi said price growth will take longer than previously expected to rise back to the ECB's near 2 percent target and that the euro zone's central bank is ready to beef up its 1 trillion euro plus asset buying program if needed.
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Emerging and financial markets are risk to the outlook

ECB member Beniot Coeure speaking in Paris on Friday sqid that outlook for global growth has clearly weakened and that financial market volatility affects FX rate, though ECB doesn't have a FX target. FX rate affect prices and inflation developments and Euro appreciated fairly significantly in recent weeks.
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