(MENAFN– ecpulse)
The euro fell against the U.S. dollar on Tuesday as investors anticipate the European Central Bank (ECB)’s interest rate decision next Thursday.
Expectations that the ECB will move towards pumping more liquidity in the markets are growing, after releasing the preliminary expectations for the annual CPI of the euro area, in addition to the recent statements by ECB’s president Mario Draghi.
The EUR/USD pair fell by 0.24% at 09:11 GMT, consolidating at 1.2443.
The recent pledge of Mario Draghi that the bank may expend the asset purchase program (quantitative easing) at its meeting scheduled on Thursday increased weighed on the euro. This comes after releasing the preliminary reading of the annual CPI of the euro area, which showed a decline from 0.4% to 0.3%.
The euro will remain under negative pressure until releasing the interest rate decision on Thursday, which will push it further to the downside if the bank decided to expand the quantitative easing program on the short and medium term.
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