Euro Fluctuates as Investors Weigh Impact of a Fed Rate Increaseby
Lot of market news `baked in the cake': SocGen's Juckes
Shared currency has fallen 5% since ECB's October meeting
The euro swung between gains and losses as investors weighed how far a December interest-rate increase by the Federal Reserve is priced into foreign-exchange markets.
Europe’s shared currency has remained little changed since reaching a six-month low on Friday after a jobs report bolstered bets the U.S. central bank will tighten policy at its next meeting.
The euro has fallen 5 percent since European Central Bank President Mario Draghi said on Oct. 22 that officials will reexamine their monetary stimulus program in December and that they’ve discussed cutting the bank’s deposit rate to boost inflation.
“We have got a lot of news pretty much baked in the cake,” Kit Juckes, a strategist at Societe Generale SA in London, said in an interview on Bloomberg Television’s “On The Move” with Manus Cranny. “If you think you’re going to get euro-dollar significantly lower, you need to get an ECB rate cut, a Fed rate hike and some new additional impetus.”
The euro slipped 0.1 percent to $1.0740 at 10:47 a.m. London time, after slumping to $1.0707 on Nov. 6, the lowest level since April 23. It dropped 0.2 percent to 132.23 yen, while Japan’s currency was little changed at 123.12 per dollar.