Euro cautious ahead of ECB policy meeting

The euro traded tends to weaken against the US Dollar on Thursday's Asian session, after stopping the increase of 2-session losing streak on Wednesday, as investors cautious ahead of a European Central Bank policy meeting. Which may be present long-term inflation outlook in the Euro zone.

Market participants also expect ECB President Mario Draghi, in a regular press conference that was held after the announcement of the policy, will give new signals about the sustainability of its quantitative easing program worth € 60 billion per month. In March the ECB launched the QE program is scheduled to run until the month of September 2016, before a series of economic shocks in China and the decline in commodity prices shake global markets in recent weeks.

While referring to the latest data, inflation in the Euro zone only grew at an annual pace of 0.2% in August. Which is still far from the target of 2% set by the ECB. While the long-term outlook published in June, the ECB predicts inflation will reach 1.8% range in 2017.