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Why the Euro Slid despite the European Central Bank’s Optimism

Ricky Cove
Why the Euro Slid despite the European Central Bank’s Optimism

The ECB (European Central Bank) left its policy unchanged at its April meeting, squashing any hopes for tightening in the near term. In response to the ECB’s post-meeting statement, the euro-US dollar exchange rate edged lower and tested lows last seen in January. This reaction was surprising, as the ECB had indicated that it was optimistic about the economy.