Forex Updates- Euro hits 1-month low against USD due to Uncertainty

On Monday, the Euro hit 1-month low vs. the USD and a three-week low against the JPY due to uncertainty over policy steps the ECB may take.

According to Forex updates the AUD previously raised to its maximum in more than 6-months vs. the Euro but then drawn back sharply after Asian shares fell down, prompting investors to decrease risky bets which includes the AUD also pushing the JPY broadly higher.

On Sunday, the European Central Bank President Jean-Claude Trichet signed during a trip to Tokyo that the bank’s expected next step might be an interest rate cut of 25 basis points.

But Trichet kept silent on facts of plans for original policy replies that are due to be revealed at the ECB’s next policy meeting on 7th May.

Trichet also rejected a proposal that ECB policy makers were separated over how far it should go and said he did not consider zero interest rates would be suitable for the ECB.

The euro fell down $1.2967 on trading platform EBS, its low down since 17th March, before recuperating to $1.2994, down 0.4% on the day.