European Open Euro Moves Lower Ahead of ECB Futures Point Higher
Euro pairs were softer overnight ahead of today’s highly anticipated ECB meeting, yet positive news on Sino-US trade relations boosted sentiment for equities.
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The US Federal Reserve has confirmed it is going to taper its stimulus package at some point in the near future.
It was revealed in the latest Fed minutes that a change will occur in the next few months.
Policymakers stated that they believe the US economy is now strengthening and it is therefore the right time for a change to monetary strategy.
The minutes – which were released yesterday (November 20th) – said they "generally expected that the data would prove consistent with the committee's outlook for ongoing improvement in labour market conditions and would thus warrant trimming the pace of purchases in coming months".
While the announcement resulted in losses for US stock markets, the Nikkei rose by close to two per cent today on the back of the news.
Uncertainty over the future direction of the Fed and concern over how monetary policy may change had led some investors in recent days to pull out of stock markets around the world.
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