Euro falls to nine-year low
January 5, 2015
LONDON – The euro slumped to a nine-year low on Monday as investors bet that the prospect of inflation across the region turning negative and mounting political uncertainty in Greece will force the European Central Bank to unleash quantitative easing. ECB will ease policy as soon as Jan. 22, when it holds its first policy meeting of the year.
Greek politics were at the forefront of market thinking on Monday as the debate around the possibility of elections later this month resulting in the country leaving the euro zone picked up again. The German government wants Greece to stay in the euro zone and there are no contingency plans to the contrary, Vice Chancellor Sigmar Gabriel said on Sunday, responding to a media report that Berlin believes the currency union could cope without Greece.