Major Currency Pairs Analysis: November 24, 2014
ICM Brokers | Nov 24, 2014 01:40AM ET
EUR/USD
The euro was sharply lower against the dollar on Friday after comments by European Central Bank President Mario Draghi indicated that it is moving closer to implementing quantitative easing measures to shore up the euro area economy. EUR/USD was down 1.19% to two-week lows of 1.2391 late Friday and ended the week with losses of 1.04%. The drop in the euro came after Draghi warned that inflation expectations were declining to levels that were very low and said the ECB is ready to expand its stimulus program to raise inflation and inflation expectations as quickly as possible.
GBP/USD
The pound slid against the dollar on Friday, ending the week close to 14-month lows as expectations that the Federal Reserve is moving closer to tightening monetary policy continued to underpin dollar demand. GBP/USD was down 0.21% to 1.5651 in late trade, not far from Wednesday’s 14-month trough of 1.5588. Sterling remained under pressure after the Bank of England’s inflation report released earlier this month prompted investors to push back expectations for a rate hike, warning that inflation was likely to continue to slow in the coming months.
USD/JPY
The dollar ended the day lower against the yen on Friday after Japan’s finance minister voiced concerns over the weaker yen amid concerns over its impact on plans to revive growth. USD/JPY down 0.33% to 117.77 in late trade, after falling to lows of 117.36 immediately following the remarks. On Thursday the pair rose to highs of 118.96, the most since August 2007. The yen has weakened broadly since the Bank of Japan unexpectedly expanded its stimulus program late last month. In contrast the Federal Reserve wound up its asset purchase program last month is expected to start raising rates around September 2015.
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