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Euro slumps to 9-year low on ECB QE expectations

2015-01-08 4 Dailymotion

The euro continues to slide in value. It was down for a fifth day on Thursday, at a nine-year low against the dollar. <br /><br /> The slump comes as investors dump euros believing that the European Central Bank is about to start quantitative easing (QE) to stimulate the eurozone economy and ward off deflation.<br /><br /> That would pump cash into the economy and comes against a background of weak growth in the currency bloc, a drop in consumer inflation and concern about the destablising effects of the Greek general election on January 25.<br /><br /> The ECB could announce it is to start a QE programme to buy government bonds as early as at its policy meeting on January 22.<br /><br /> The dollar is getting a boost on expectations the Federal Reserve will raise interest rates in the United States this year, although the timing remains unclear.<br /><br /> Minutes of the December meeting offered no new clues, although most expect the Fed to act around mid-year. <br /><br /> “The Fed hinted that in its view the financial markets have not been

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