Euro at Almost 6-Month Low as ECB Easing Talk Contrasts With Fed
- Higher U.S. rates probability jumps after strong jobs report
- Volatility for Group of Seven currencies reaches 1-month high
This article is for subscribers only.
The euro traded near its weakest level since April amid speculation the European Central Bank will deploy further currency-depreciating stimulus next month even as the U.S. moves to raise rates.
The 19-nation currency fluctuated against the dollar after the stronger-than-forecast U.S. jobs report on Nov. 6 boosted the likelihood of a December rate increase by the Federal Reserve to 68 percent. While that should see the greenback strengthen against most of its peers by the end of the first quarter, the ECB is still weighing further easing. Reuters reported that a consensus is forming around cutting the deposit rate in December, citing four unidentified members of the ECB Governing Council.