{"id":6006,"date":"2019-09-11T02:04:31","date_gmt":"2019-09-11T06:04:31","guid":{"rendered":"https:\/\/currencylive.com\/?p=6006"},"modified":"2019-09-11T02:04:31","modified_gmt":"2019-09-11T06:04:31","slug":"101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/","title":{"rendered":"EUR\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement"},"content":{"rendered":"

The euro remained evenly matched with the US dollar across the session on Tuesday. Both currencies lacked relevant data releases. As a result, both the Euro and the US dollar experienced a lacklustre session. The pair closed flat at US$1.1049. The euro is advancing in early trade on Wednesday.<\/p>\n

 <\/p>\n\n\n\n\n
What do these figures mean?<\/strong><\/td>\n<\/tr>\n
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n

For example, it could be written:<\/p>\n

1 EUR = 1.12829 USD<\/em><\/p>\n

Here, \u20ac1 is equivalent to approximately $1.13. This specifically measures the euro\u2019s worth against the dollar. If the U.S. dollar amount increases in this pairing, it\u2019s positive for the euro.<\/p>\n

Or, if you were looking at it the other way around:<\/p>\n

1 USD = 0.88789 EUR<\/em><\/p>\n

In this example, $1 is equivalent to approximately \u20ac0.89. This measures the U.S. dollar\u2019s worth versus the euro. If the euro number gets larger, it\u2019s good news for the dollar.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

The previous session was a relatively quiet session for the euro. With no economic data to focus on, investors were looking ahead to tomorrow\u2019s European Central Bank (ECB) monetary policy announcement.<\/p>\n

Given the recent slew of dismal data from Germany and signs of weakness in the eurozone economy, market participants broadly expect the ECB to dole out fresh monetary stimulus in the form of a rate cut. They also expect the central bank to restart the quantitative easing programme from October, also to be announced following the meeting tomorrow.<\/p>\n

 <\/p>\n\n\n\n\n
Why do interest rate cuts drag on a currency\u2019s value?<\/strong><\/td>\n<\/tr>\n
Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Lower interest rate environments tend to offer lower yields. So, if the interest rate or at least the interest rate expectation of a country is relatively lower compared to another, then foreign investors look to pull their capital out and invest elsewhere. Large corporations and investors sell out of local currency to invest elsewhere. More local currency is available\u00a0 as the demand of that currency declines, dragging the value lower.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

However more recently ECB policy makers including France\u2019s central bank President Villeroy and Estonia\u2019s central bank President Muller hve cast doubt over the size of the stimulus package. Should the package disappoint investors in terms of size or scale then the euro could in fact advance.<\/p>\n

Will US Factory Level Inflation Drag Dollar Lower? <\/strong><\/h3>\n

The dollar experienced a dull session on Tuesday. With no relevant data and no fresh news on US \u2014 China trade dispute talks, the dollar bumbled along. Not even President Trump firing National Security Adviser John Bolton provoked a move in the green back.<\/p>\n

Today there is no high impacting US data due. Producer Price Index, PPI, or inflation at factory level could attract the attention of investors. Economists consider PPI an important indication of future consumer inflation. Therefore, a weak reading could give the dollar lower by raising fears over the health of the US economy.<\/p>\n

 <\/p>\n\n\n\n\n
Why does poor economic data drag on a country\u2019s currency?<\/strong><\/td>\n<\/tr>\n
Slowing economic indicators point to a slowing economy. Weak economies have weaker currencies because institutions look to reduce investments in countries where growth prospects are low and then transfer money to countries with higher growth prospects. These institutions sell out of their investment and the local currency, thus increasing supply of the currency and pushing down the money\u2019s worth. So, when a country or region has poor economic news, the value of the currency tends to fall.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Following Friday\u2019s weak US non-farm payroll, fears have grown that the negative impact of the US \u2014 Sino trade dispute is seeping through the US economy. \u00a0Analysts are forecasting a 0.1% increase month on month for PPI.<\/p>\n

The most important release of the week for the U dollar will be Thursday\u2019s consumer inflation figures. Analysts are forecasting a 1.7% increase year on year in inflation. This is below the 2% target set by the Federal Reserve. Weak inflation means a rate cut is more likely.<\/p>\n

 <\/p>\n

Currency<\/em>live.com\u00a0 is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation.\u00a0<\/em><\/h6>\n
The content on our site is provided for general information only. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or retain from, any action on the basis of the content on our site.<\/em><\/h6>\n
Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.<\/em><\/h6>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The euro remained evenly matched with the US dollar across the session on Tuesday. Both currencies lacked relevant data releases. As a result, both the Euro and the US dollar experienced a lacklustre session. The pair closed flat at US$1.1049. The euro is advancing in early trade on Wednesday.   What do these figures mean? […]<\/p>\n","protected":false},"author":163946597,"featured_media":5186,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1381],"tags":[1425,1413,1395,1393,1387,1510,1447,1433,1509,1400,1397,1398],"class_list":{"0":"post-6006","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eur","8":"category-usd","9":"tag-cpi","10":"tag-ecb","11":"tag-eur","12":"tag-euro","13":"tag-inflation","14":"tag-john-bolton","15":"tag-ppi","16":"tag-rate-cut","17":"tag-stimulus","18":"tag-trump","19":"tag-us-dollar","20":"tag-usd"},"acf":[],"yoast_head":"\nEUR\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"EUR\\\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement\",\"datePublished\":\"2019-09-11T06:04:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/\"},\"wordCount\":878,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100808-gbp-eur-no-deal-threat.jpg\",\"keywords\":[\"cpi\",\"ecb\",\"eur\",\"euro\",\"Inflation\",\"john bolton\",\"ppi\",\"rate cut\",\"stimulus\",\"trump\",\"us dollar\",\"usd\"],\"articleSection\":[\"EUR\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/\",\"name\":\"EUR\\\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement - Currency Live\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100808-gbp-eur-no-deal-threat.jpg\",\"datePublished\":\"2019-09-11T06:04:31+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/#primaryimage\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100808-gbp-eur-no-deal-threat.jpg\",\"contentUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100808-gbp-eur-no-deal-threat.jpg\",\"width\":1200,\"height\":675,\"caption\":\"GBP\\\/EUR: Pound Rallies vs. Euro As No-Deal Threat Diminishes\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"EUR\\\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/\",\"name\":\"Currency Live\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/currencylive.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\",\"name\":\"Fiona Cincotta\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g\",\"caption\":\"Fiona Cincotta\"},\"description\":\"Editor - Senior Financial Market Analyst Through over a decade\u2019s experience analysing and reporting on global currency markets, Fiona has a gained a deep understanding of the fundamental drivers of currencies. She is regularly quoted by international news organisations including Financial Times, Reuters and Bloomberg. Fiona is a familiar face after years of appearances on BBC, Sky News and Fox Business News.\",\"sameAs\":[\"https:\\\/\\\/www.linkedin.com\\\/in\\\/fiona-cincotta-bb4a4845\\\/\"],\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/author\\\/fiona-cincotta\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"EUR\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement - Currency Live","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/","twitter_misc":{"Written by":"Fiona Cincotta","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/#article","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/"},"author":{"name":"Fiona Cincotta","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"headline":"EUR\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement","datePublished":"2019-09-11T06:04:31+00:00","mainEntityOfPage":{"@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/"},"wordCount":878,"image":{"@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100808-gbp-eur-no-deal-threat.jpg","keywords":["cpi","ecb","eur","euro","Inflation","john bolton","ppi","rate cut","stimulus","trump","us dollar","usd"],"articleSection":["EUR","USD"],"inLanguage":"en-US","copyrightYear":"2019","copyrightHolder":{"@id":"https:\/\/currencylive.com\/news\/#organization"}},{"@type":"WebPage","@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/","url":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/","name":"EUR\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement - Currency Live","isPartOf":{"@id":"https:\/\/currencylive.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/#primaryimage"},"image":{"@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/#primaryimage"},"thumbnailUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100808-gbp-eur-no-deal-threat.jpg","datePublished":"2019-09-11T06:04:31+00:00","author":{"@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec"},"breadcrumb":{"@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/#primaryimage","url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100808-gbp-eur-no-deal-threat.jpg","contentUrl":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100808-gbp-eur-no-deal-threat.jpg","width":1200,"height":675,"caption":"GBP\/EUR: Pound Rallies vs. Euro As No-Deal Threat Diminishes"},{"@type":"BreadcrumbList","@id":"https:\/\/currencylive.com\/news\/101142-eur-usd-euro-investors-look-to-thursdays-ecb-policy-announcement\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/currencylive.com\/news\/"},{"@type":"ListItem","position":2,"name":"EUR\/USD: Euro Investors Look To Thursday\u2019s ECB Policy Announcement"}]},{"@type":"WebSite","@id":"https:\/\/currencylive.com\/news\/#website","url":"https:\/\/currencylive.com\/news\/","name":"Currency Live","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/currencylive.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/currencylive.com\/news\/#\/schema\/person\/8ef0fafb6c93f1204150bb907b42cfec","name":"Fiona Cincotta","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/79afd1dde0d7ad291707268bbcdb9fdb41b2dd29f8088c8cfe9c67cd2a1de0e4?s=96&d=blank&r=g","caption":"Fiona Cincotta"},"description":"Editor - Senior Financial Market Analyst Through over a decade\u2019s experience analysing and reporting on global currency markets, Fiona has a gained a deep understanding of the fundamental drivers of currencies. She is regularly quoted by international news organisations including Financial Times, Reuters and Bloomberg. Fiona is a familiar face after years of appearances on BBC, Sky News and Fox Business News.","sameAs":["https:\/\/www.linkedin.com\/in\/fiona-cincotta-bb4a4845\/"],"url":"https:\/\/currencylive.com\/news\/author\/fiona-cincotta\/"}]}},"jetpack_featured_media_url":"https:\/\/currencylive.com\/news\/wp-content\/uploads\/2019\/08\/100808-gbp-eur-no-deal-threat.jpg","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/6006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/users\/163946597"}],"replies":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/comments?post=6006"}],"version-history":[{"count":2,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/6006\/revisions"}],"predecessor-version":[{"id":6008,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/posts\/6006\/revisions\/6008"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media\/5186"}],"wp:attachment":[{"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/media?parent=6006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/categories?post=6006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/currencylive.com\/news\/wp-json\/wp\/v2\/tags?post=6006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}