According to the latest FOREX market data from Thursday, Euro has sled to 11-years low against the Dollar as the investors are waiting for more details from the European Central Bank (ECB) about their massive bond buying programme.
Market analysts said, the Euro eased 0.1% to $1.1065 on Thursday. According to the market data, it was $1.1061 on Wednesday, its lowest level since September 2003. It was earlier reported that this month ECB will start its Quantitative Easing (QE) or Bond-Buying programme in the amount of 1 trillion. Everyone is expecting ECB to lay out the details of the programme today after their policy meeting on Wednesday.
But the market analysts have suggested that the QE scheme will not have an impact on the Euro as the price had been declared during the launch of the programme. But they also suggested that the reemerging USD and stronger monetary policy in the USA will have an impact on the Euro. According to the market analysts, when the bond buying start investors are looking at the mechanism of the ECB`s QE, they wanted to know if it is applied in paper with negative yield and how the purchase will be distributed along the yield curve.
In a statement Mitul Kotecha, Head of FX strategy, Asia-Pacific for Barclays in Singapore said, “I don’t think we will see any big surprises… We think that we could see the beginning of these asset purchases as early as next week”.
Market analysts said, the yield across Europe is in its record low as the Investors are looking at how much liberty ECB provide during their QE. They also suggested that this will extend the yield difference between the Euro and Dollar. It was also suggested that the investors are also eagerly waiting to hear from the USA Federal Reserves, when they are going to increase the interest rate.
According to market data, Dollar index rose to as high as 96.061 as of 0422 GMT. Against the yen, the Dollar inched up 0.1 percent to ¥119.84.
