Euro Holds Near Seven-Month Low on Renewed Policy Divergence Bet
- Speculators increase bearish euro wagers to most since July
- Fed, not ECB, will be principal driver of single currency: BNP
A one euro coin.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
The euro held near a seven-month low amid speculation the European Central Bank will maintain its easy monetary policy as the Federal Reserve prepares to raise interest rates.
The single currency held onto three weeks of declines after ECB President Mario Draghi said Oct. 20 that neither tapering of the bank’s bond-buying plan nor an extension of the program were discussed at its two-day policy meeting. Speculators increased bearish-euro bets to the most since July as expectations faded that officials back a sudden end to quantitative easing after March.