ECB Attempts To Verbally Devalue The Euro

The euro fell slightly as the European Central Bank worked to verbally devalue the currency after last week saw it rise past $1.39.

The common currency traded at $1.3855 following Saturday's news conference with ECB President Mario Draghi.

Reuters reported that Draghi warned bullish investors that the bank will be forced to ease further at May's meeting if the single currency continues to gain strength.

Following Draghi's comments this weekend, ECB policy member Christian Noyer agreed on Monday by saying that more accommodation would be needed for a stronger euro.

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The central bankers' comments mark the first signs that the region's central bank is concerned about the direction of the common currency. At the past two policy meetings, the ECB has been reluctant to step in despite falling inflation and a stronger than expected currency.

Many, including the International Monetary Fund and several eurozone policymakers, have been pressuring the ECB to act, but the bank has kept from intervening thus far.

The euro also fell under pressure as the situation in Ukraine escalated and investors looked to safer currencies. On Monday morning, the Ukrainian government told the pro-Russian separatists holding several government buildings that they must disarm by a concrete deadline or the nation will launch a “full scale anti-terrorist operation."

The threat could raise the possibility of further military intervention from Moscow, which in turn would create more tension between Russia and the West.

For now, the conflict's escalation has had little effect on the euro, but should things continue to worsen it will likely sink further.