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4 Dec 2014
EUR/USD clings to 1.2400
FXStreet (Córdoba) - EUR/USD steadied around 1.2400 after the rally triggered by the ECB inaction stalled at 1.2413.
The European Central Bank refrained from announcing new easing measures at December’s meeting, but hinted at QE (quantitative easing) next year. Euro advanced across the board but it was having a hard time finding follow-through with US nonfarm payrolls around the corner.
However, EUR/USD hit a fresh 30-month low of 1.2286 before bouncing sharply to trim weekly losses. At time of writing, the pair is trading at 1.2404, recording a 0.75% gain on the day.
ECB cuts forecasts for inflation and growth
The ECB staff also published its quarterly forecast for growth and inflation Thursday. Eurozone GDP forecasts for 2015 and 2016 were cut to 1.0% and 1.5% from 1.6% and 1.9% estimated in September, while ECB staff expects consumer inflation to rise 0.7% in 2015 and 1.3% in 2016, down from 1.1% and 1.5% and well below the target of 2.0%.
The European Central Bank refrained from announcing new easing measures at December’s meeting, but hinted at QE (quantitative easing) next year. Euro advanced across the board but it was having a hard time finding follow-through with US nonfarm payrolls around the corner.
However, EUR/USD hit a fresh 30-month low of 1.2286 before bouncing sharply to trim weekly losses. At time of writing, the pair is trading at 1.2404, recording a 0.75% gain on the day.
ECB cuts forecasts for inflation and growth
The ECB staff also published its quarterly forecast for growth and inflation Thursday. Eurozone GDP forecasts for 2015 and 2016 were cut to 1.0% and 1.5% from 1.6% and 1.9% estimated in September, while ECB staff expects consumer inflation to rise 0.7% in 2015 and 1.3% in 2016, down from 1.1% and 1.5% and well below the target of 2.0%.