The euro gained on the dollar today after the ECB minutes confirm that the bank is expecting to miss its inflation target yet again. The EUR/USD had a gain of 0.79% on the day to reach 1.0743. According to the data released in the minutes, the ECB does not think that the current measures are enough to reach the bank’s inflation target.
Analysts have expected that current measures are not enough to combat inflation.
External factors and uncertainty have led to the ECB’s measures not being able to reach current objectives. The bank is expected to re-examine current policies during its December 3 meeting. Reassurance that the ECB is going to discuss inflation worries has helped the euro gain against the USD and the JPY.
The EUR/JPY is up slightly on the day by 0.1% to reach 131.90. In early morning trading, EUR/JPY actually slipped nearly .2% before rising again.
Despite Japan’s economy slipping into a recession during Q3, the Bank of Japan did not make any monetary policy changes on Thursday. Not implementing any changes has caused the yen to rise or remain flat against many currencies.
The bank has reaffirmed that they will continue with the pledge to purchase Y80 trillion in government bonds annually. The US dollar index has fallen on the day down 0.73%.