Euro Holds Steady, ECB Meeting Next
The euro continues to grow versus US dollar in expectations of the European Central Bank’s meeting. The euro/dollar pair added 0.10% to trade at 1.1380 level. The single currency rose slightly today after Italy said it would cut its budgetary spending plans in a row with the European Union, although traders were in a cautious mood ahead of the ECB’s monetary policy meeting.
The European Central Bank is set to confirm that its four-year long quantitative easing program, which saw the bank buying EUR 2.6 trillion worth of bonds in a bid to rescue the Eurozone economy, will conclude in December. The current forward guidance of the ECB suggests that an interest rate hike is likely only in late 2019. Given the weaker growth and inflation outlook, and the persistent uncertainties linked to global trade and politics, some economists now expect the bank to raise interest rates only in 2020.
Consumer prices in Germany increased by 2.3% in annual terms in November, although the growth was weaker than the previous value of 2.5%. Compared with October 2018, the consumer price index increased by 0.1% in November after rising 0.2% earlier.