The European single currency has started the new year very bad, and fell below the mark of 1.21 US dollars. Investors suspect a coming start of a program for the purchase of government bonds by the ECB. The euro reached a four and a half-year low, just above the 1.20 US dollar mark.

ECB President Draghi stoking speculation

Already in December Mario Draghi expressed that the European National Bank is willing for further measures to strengthen the economy, and to achieve a rising inflation rate to take further action. There have been no precise statements about the type of measures it could be, analysts and financial experts, however, are unanimous in saying that the ECB will start a large purchase of government bonds. The speculation that the purchases could be decided already on the next ECB meeting on January 22, the ECB president has strengthened in an interview with the newspaper "Handelsblatt" continues with the statement that the preparations for measures, if necessary, are running.

US dollar benefits significantly

The approach of the US Federal Reserve shows exactly in the opposite direction to the stance of the ECB, what is clearly evident in value of the US dollar. The Fed had announced last November, the ending of the purchase program for government bonds, and placed after the meeting in December raising interest rates in view. While this was coupled with expectations of economic development, the already expressed willingness was enough to win the strengthened trust of investors, and the US dollar strengthened its strength against most other currencies on, with the dollar Indes with 91.024 points on the highest level in nearly 9 years.

Euro struggles with $ 1.20 mark, and GBP are after

Meanwhile, the Euro continues its downward trend unperturbed, and stays just above the mark of 1.20 US dollars. Currently shows the euro against the US dollar fell by 0.83 percent, with a current price of 1.2006 US dollar. The British pound has also experienced significant losses in the wake of weak figures for manufacturing PMI today. The PMI was expected in analysis with a minimum plus, but actually fell from 53.5 points to 52.5 points down. Against the US dollar, the GBP is currently showing a loss of 1.57% at 1.5335.