Euro depreciates against dollar ahead of ECB meeting

MOSCOW, 22 Oct. The Euro on Thursday, dropping against the dollar on the expectation of the investors meeting of the European Central Bank (ECB), and the decision may be made later this week, according to AFP.

As at 10.18 GMT the Euro against the dollar decreased to 1,1321 with 1,1340 dollar dollar per Euro yesterday. The dollar against the yen fell to 119,79 yen per dollar with 119,93 yen per dollar at the previous closing. The dollar index (the dollar against a basket of currencies of six major U.S. trading partners) decreased by 0.07% — up to 94,98 of the item.

The decline in oil prices has resulted in deflation in the Eurozone last month. Some investors feel that due to the recent statistical data on the dynamics of prices, the ECB eventually may decide to expand or extend its programme of asset purchases. The next meeting of the European regulator will be held on October 22.

Inhibits the decline of the European currency to dollar published earlier this week quarterly credit data from the ECB. According to them, the credit standards banks in the Euro area has declined markedly over the past few months, despite the global market volatility. This reduced the need of the regulator in the extension of the QE program.

“The General opinion is that we will not see more stimulus, but the possibility remains open”, — told Reuters chief market strategist at IG Ltd in Melbourne, Chris Weston (Chris Weston).