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Forex - Euro hits session lows against dollar, yen

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Investing.com -

Investing.com - The euro fell to session lows against the dollar and the yen on Tuesday following reports that the European Central Bank is looking at expanding its bond purchasing program to include corporate debt.

EUR/USD was down 0.57% to 1.2727, having retreated from session highs of 1.2840.

The euro weakened against the other major currencies after Reuters reported that the ECB is considering buying bonds issued by companies, or corporate debt, to help shore up growth and inflation in the euro zone.

The report said the bank could activate the new stimulus plan as soon as December and start bond purchases by early next year.

The ECB began purchasing covered bonds on Monday in a bid to increase liquidity in the region.

The euro rose to session highs against the dollar earlier in the session after third quarter growth data from China added to concerns over the outlook for the global economy.

China's economy grew at an annual rate of 7.3% in the three months to September, slightly higher than the 7.2% forecast by economists, but slowing from 7.5% in the second quarter.

It was the slowest rate of growth since the first quarter of 2009, in the midst of the global financial crisis.

The lackluster data fuelled worries that slowing global growth could act as a drag on the U.S. economy.

The data came a day after Germany's Bundesbank said the country's economy barely grew in the third quarter. It said that while the euro zone's largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.

EUR/JPY dropped 0.72% to 135.91, while EUR/GBP was down 0.42% to 0.7885.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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