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Tension among EUR traders leads to EUR/ZAR exchange rate losses. The Euro (EUR) has fallen by 0,6 percent against the South African Rand (ZAR) today, ahead of a key meeting of European Central Bank (ECB) policymakers.
It should be noted that the Euro is trading positively against other peers, so this decline is partly down the Rand being the stronger currency of the pair.
Despite some economists downplaying today’s event, Euro traders are still keeping a close eye on the situation for any key statements from policymakers.
Among those remaining cautious has been A&G Banca Privada’s Diego Fernandez, who said:
‘(The) meeting should be just a formality.
‘ECB President Mario] Draghi will probably repeat his messages on the bond-buying program and on rates and insist on the need for more fiscal steps. There is little room for surprises.’ Among other issues that policymakers could touch on is Italy’s budget situation. The Italian government has submitted a budget to the European Commission (EC) that has subsequently been rejected and sent back for revision.
This risks frustrating Italy’s Eurosceptic government and might lead to greater problems if the revised budget is also given a thumbs down in 3 weeks’ time.- euroexchangeratenews-
Online Reporter