Euro Gains Ground vs Rivals After ECB Hawk Calls Winding Down Asset Purchases

The euro rose versus its American counterpart for second day in a row on Monday, pulling back from a one-and-a-half-month low recorded last Friday. The single currency was boosted on the back of hawkish comments from an ECB hawkish official.

The pair EURUSD added 0.2 percent to trade at $1.1756 in North American trading session on Monday after having hit a low at $1.1668 on Friday. ECB Executive Board member Sabine Lautenschlaeger on Monday claimed that the central bank should reduce its asset purchases from next year with the aim to halt the program altogether.

Lautenschlaeger, who has in the past spoken favorably about withdrawing stimulus, argued that swelling the ECB’s balance sheet any further is not needed given the fact that the factors holding down inflation are temporary. The ECB is scheduled to hold its policy meeting later this month, on October 26th, to decide whether to continue bond purchases next year.

Trade suggestion

Buy Stop at 1.17600, Take profit at 1.18000, Stop loss at 1.17400

 

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