European Central Bank Stimulus Anticipation Heightens
The European Central Bank (ECB) will conduct its meeting later this week. Gearing ahead, the euro was slightly under pressure on Monday trading. Read more about the European Central Bank.
ECB policymakers are expected to impose new monetary policy easing in attempts to bolster a weakening economy.
The euro managed to retrace back at $1.130 in Asian trading after a fall of 0.1% last week.
Sterling slipped to $1.2276, 0.10% less on the day.
The dollar index fell 0.04% to 98.423.
The dollar traded at 106.91 yen, only slightly changed from Friday sessions.
The Aussie dollar inched higher to $0.6859 closing in nearer to a six-week high of $0.6862.
The New Zealand dollar remained at $0.6428, only slightly distant to a three-week peak of $0.6444 touched on Friday.
There is a continuous rise in the anticipation for an ECB monetary policy easing as other major central banks start to act against a looming monetary meltdown. This includes the People’s Bank of China (PBOC). Read more about the European Central Bank.
PBOC Cuts Cash Reserves
On Friday, the PBOC slashed the number of cash reserves to be held by banks. Following this, on Monday, the yuan dampened in a state of surprise as the decline in exports surfaced on Sunday’s reports.
For the third instance this year, the Chinese central bank said it was releasing 900 billion yuan ($126.35 billion). This is to try and put a halt in the leaking of its economy.
The PBOC has now declared its 7th monetary policy easing since early 2018.
Read more about the European Central Bank.
Policymakers are now speeding up on the move to amplify economic growth. This is due to the long drawn out discourse between the United States and China extending into a second year. The trade war increases the risk of recession.
Chinese exports unexpectedly slumped in August significantly hindered by a sharp slowdown in shipments to the US.
The onshore yuan decreased by 0.13% to 7.124 per dollar. Outside the mainland, the offshore yuan slipped 0.22% to 7.123 per dollar.
Read more: European Central Bank’s Surprise Cut Worries, Euro Steadies
