Forex: The Euro remains stable until the ECB

The euro was stable on Monday as investors await a meeting of the European Central Bank later this week in which new stimulus measures are expected.

The euro was little changed at 1,1022 at 12.40 pm after a 0.1% decline on Friday.

The ECB will certainly approve it on Thursday, new economic stimulus measures to revive an economy in crisis, but the exact composition of the stimulus plan is still not clear.

Although the reduction in the interest rate seems to be a fact, the big question is whether the resumption of asset purchases will be part of the package after that some policy-makers have stated that it would be premature.

The ECB should ease its monetary policy while other central banks soften their policies, especially the people’s Bank of China, which has reduced Friday, the amount of cash that banks must hold as reserves.

Policy makers are eager to support the growth while a dispute of scale between the United States and China on trade policy drags into a second year, increasing the risk of recession.

The u.s. federal Reserve will continue to act “appropriately” to support the economic expansion of the world’s largest economy, said on Friday in Zurich Fed chairman Jerome Powell, confirming the expectations of a rate cut at the next policy decision of the Fed on September 18.

–Reuters contributed to this report

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