The value of the Euro has fallen to its lowest level since the middle of 2010, following comments from Mario Draghi, the president of the European Central Bank (ECB). In a newspaper interview, Draghi hinted again that the bank might soon start a policy of quantitive easing in an attempt to stimulate the eurozone economies. He aims to stop the continued fall in the general level of prices for European goods. After his comments were made public, the euro fell 0.4% to $1.2034.
The ECB also plans to inject cash into the banking system in order to stimulate the economy and push prices higher. They plan to take action in early 2015 according to a recent interview.
Consumer inflation has not been at the ECB's target level of just below 2% since the start of 2013, and has been falling since a 3% peak late in 2011. The eurozone's low inflation has been attributed to undermining growth and has prompted ECB stimulus measures. Greece also continues to avoid its austerity measures and may exit the eurozone if it continues to do so.
Naturally, if the Euro continues to plummet it will not only have a negative impact on the American economy, but the global economy as well.
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