Euro may show biggest weekly loss in 19 months

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Euro may show biggest weekly loss in 19 months

June 15, 2018 - 11:02
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On Friday euro is very close to show the biggest weekly slump in 19 months after European Central Bank announced that is going to leave interest rates at record level till the end of next year, Reuters reports.

Photo © MichaelM, CC0 1.0

On Friday euro is very close to show the biggest weekly slump in 19 months after European Central Bank announced that is going to leave interest rates at record level till the end of next year, Reuters reports.

ECB however said that will finish its bonds purchase program till the end of 2019. It will represnt the big step towards quitting stimulus attributable to crisis period.

Nevertheless, due to uncertainty over future development of region's economy, interests rates will be lifted not earlier than in fall of 2019.

As a result euro fell by 1,9% on Thursday. This is the biggest day loss since UK's vote on Brexit in June 2016.

During night euro declined even more and was $1,1555 in the morning. In total currency lost 1,72% during the week.

Experts think that such losses were due to large contrast of ECB's decision with US Fed decision that raised interest rates on Wednesday and informed about plans to raise rates two more times in 2018.

 

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