[iForex]

The euro’s relative monetary policy advantage is being eroded as the ECB edges toward credit/quantitative easing, while the FX stigma attached to such policies is receding. Because of the ECB’s relative caution it appears the euro is suffering from the downside of unconventional policy measures (weakness as adoption evolves) without the benefit of subsequently improved relative growth expectations. Investors do currently not view the Euro-area as a growth play, with risk seeking capital headed for EM and commodities. Also, some do not believe that the story of USD demand created by European banks writing down the value of USD denominated debt has yet run its course.