The European currency continues to remain under pressure ahead of the meeting of the European Central Bank policymakers which is expected to result in a decision about the monetary policy. The consumer prices index fell into the negative territory due to inner problems of the European economy and drop in global oil prices.
Eurozone inflation turned negative for the first time since 2009. At the same time, the ECB survey shows further decline in the value of net investments in the euro area’s economy. The current account surplus in the euro zone decreased to €18.1 billion from €19.5 billion in November.
The current economic situation stays difficult. Investors are getting more confident in their expectations of the imminent QE program, disregard of this program may cause (a) negative impact. Traders are more worried about a potential value of (the) QE program than about the probability of its start.
The amount of short positions in the euro increased greatly early this week. The currency correction took place, so that is a good opportunity to buy (the) EUR/USD pair, according to strategists.
The Swiss National Bank's decision to abandon the euro cap on the franc's value shows that the regulator is also afraid of the euro to be depreciated. That is one more sign that the ECB is getting ready to extend its balance be means of treasury bonds purchase.