Draghi will bow out as head of the ECB at the end of the month. His final meeting in charge is not expected to see any policy action.
Investors now await the ECB meeting to see whether Draghi talks about recent reports of rifts within the bank over stimulus. Markets awaited comments from Mario Draghi after his last meeting as ECB President, following euro zone PMI data. Despite the ECB announcing plans for fresh stimulus in September, euro zone private sector activity has barely expanded in October.
Mario Draghi may be the man who saved the euro. But his last press conference as President of the ECB is unlikely to be the grand finale he was hoping for.
Market participants await European and U.S. manufacturing data due on Thursday to gauge the health of the global economy. Also, a trio of central bank meetings were being held on Thursday. None expects any changes in interest rates. A European Central Bank meeting will be Mario Draghi’s last as president.
Investors also await the U.S. Fed’s meeting on Oct. 29 and 30, at which it is expected to cut its benchmark interest rate for a third consecutive time this year. Federal fund futures imply that traders see a 91.4% chance for a 25-basis point rate cut.
START TRADINGForex – Epilogue for Draghi defending his policy
Investors awaited the European Union’s decision on whether to grant Britain a Brexit extension and for how long. Most Asian currencies edged up in the absence of developments in the Sino-U.S. trade war.
The dollar index was down 0.1% at 97.396, on track for its second straight session of losses.
The Canadian dollar steadies near 3-month high as rate decisions loom. It pulled back from an earlier three-month high. The loonie was unchanged at 1.3070 to the greenback, or 76.51 U.S. cents. The currency touched its strongest intraday level since July 22 at 1.3053.
The Australian dollar was down 0.3% versus the U.S. dollar and the New Zealand dollar fell as much as 0.5%.
The euro rose 0.2% to a session high of $1.1163 after data showed French business activity rose more than expected in October. It gave up those gains after German figures came in weaker than expected.
The pound moved down 0.2% to $ 1.2875, having chalked up 6% gains. Irish and British leaders said they could “see a possible pathway to a deal” on Oct. 10. After surging to a 5-1/2 month high on Monday, the pound has been back under pressure. Sterling traders realise the Brexit end game is more uncertain than they thought last week. Against the euro the British currency dropped 0.2% to 86.315 pence per euro.
Oil prices steadied above $61 a barrel on Thursday. Brent crude was unchanged at $61.17 a barrel at 1158 GMT, having risen 2.5% on Wednesday. U.S. West Texas Intermediate (WTI) crude was down 10 cents at $55.87.
Gold prices inched down on Thursday as investors awaited clarity on Brexit. Spot gold fell 0.2% to $1,488.58 per ounce as of 0725 GMT.
PLEASE NOTE The information above is not investment advice.Sources: Reuters, Investing, CNN money