Reasons why the Euro hit a new low

Source: Investing.com
The Euro declined to a nine-year low versus the US Dollar amid investor fears of ECB implementing an aggressive incentive plan in order to boost the Euro zone's economy. It was stated by an ECB member that due to a risk of deflation policymakers should act fast. As a result, the price of the Euro slid to $1.1754, the new low unseen since 2005. Data shows that inflation in the Euro zone dropped 0.2%, backing up fears of deflation. The country with the strongest economy in Europe, Germany, had a 0.1% inflation, a lot less than expectation of 2%. QE is considered to be the best solution, however, it could boost the economy, but might cause a further decline of the Euro.
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