Sep 27, 2019

The euro sinks to lowest level in 2 years against the dollar

Data: Investing.com; Chart: Axios Visuals
Data: Investing.com; Chart: Axios Visuals

Pulled down by more loose monetary policy from the European Central Bank and weak European growth data, the euro fell to its lowest level in 2 years against the dollar Thursday.

The intrigue: "The biggest story in the world right now is the whistleblower's complaint on President Trump but the biggest story in the forex market is the persistent decline in the euro," BK Asset Management managing director of FX strategy Kathy Lien wrote in a note to clients.

  • The euro was one of the few currencies not to trade higher against the greenback yesterday, and has moved lower in 4 of the last 5 trading sessions, Lien noted.
  • "Investors are worried that between the U.S. and U.K.'s troubles, Eurozone policy makers will need to step in with more action and the longer the Germans wait to announce fiscal stimulus, the more likely EUR/USD will hit 1.08."

Go deeper: The eurozone economy is getting worse

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