The euro depreciated towards $1.17 in late September, hovering around its weakest level since August 22nd, due to growing risk aversion amid prospects of slower global growth and expectations for a tapering signal from the US Federal Reserve. The Fed is seen sticking with broad plans for tapering this year but could hold off providing details or a timeline for at least a month. Earlier this month, the European Central Bank decided to move to “a moderately lower pace” in its €1.85 trillion PEPP from the €80 billion a month level it has run at since March, amid a stronger near-term outlook for prices and growth. Still, the central bank did not provide any detail about the exact end of emergency support, leaving that contentious decision for December’s meeting.
