The euro has reached its weakest point since mid-April against the dollar. News from the European Central Bank on Thursday points to monetary easing measures being put in place by the ECB.
The euro zone continues to struggle as the Federal Reserve is expected to increase interest rates in the U.S.
A major rift between the United States and European policies has caused two-year bond yields to have its biggest contrast in over nine years. The ECB is expected to extend its current bond buying program, which has helped the European stock market on Monday morning.
All of the major indexes are up on the day. The FTSE 100 is up 0.09%, France’s CAC 40 is up 0.54%, and Germany’s DAX is up 0.8% on Monday morning. The Swiss market index is also up 0.17%, while the Euronext 100 is up 0.35% on the day.
OPEC announced on Friday that its output policy will remain unchanged despite a supply glut.
The ECB is expected to cut its interest rate even further by 10 basis points despite negative interest rates already being in place. An asset purchase program, which is valued at €60 billion per month, is expected to be extended as well in an attempt to boost the European economy.