The euro dipped but most investors just observe ahead of a key European Central Bank meeting on Thursday. ECB monetary easing package is much expected.
After sliding to a more than two-year low earlier this month, the euro has since rebounded. Policymakers signalled some doubt about restarting its bond buying package to boost the region’s economy. Expectations that policymakers will push interest rates even further into negative territory have weighed on the euro. The common currency has shed 3% since June.
The ECB meets this Thursday. European officials noted their place in the queue as they contemplate pushing the euro area’s target interest rate deeper into negative territory.
The ECB decision is likely to set the tone for upcoming rate-setting meetings by the Federal Reserve and the Bank of Japan next week. The last time major central banks shifted gears together, it was a cooperative move to keep the financial crisis of a decade ago from becoming a full-bore, worldwide depression.START TRADING
Forex – Investors hope for ECB monetary easing
Investors await ECB monetary easing in policy meeting on Thursday to boost broader global risk appetite.
The dollar index ticked 0.1% higher to 98.467.
The Canadian dollar was little changed against its U.S. counterpart on Wednesday. Loonie held near a six-week high it notched the day before. Oil prices rose and domestic data showed higher than expected industrial capacity usage.
The Yen fell 0.2% at 107.70 yen, some way from the 104.46 levels of late August. The rush into safe-haven assets during the summer continued to unwind versus the rising risk appetite.
The euro fell 0.2% to $1.1026, with bets divided on the likely scope and style of any stimulus.
The British pound rose marginally to $1.2371. But was near its six-week high of $1.2385 hit earlier in the week as fears of a no-deal Brexit recede. It gained 0.2% to 89.20 pence per euro.
Gold prices Gold rose on Wednesday, supported by lingering concerns over the global economy and U.S.-China trade tensions. Spot gold was up 0.5% at $1,492.50 per ounce as of 1246 GMT. Prices fell to their lowest since Aug. 13 at $1,483.90 in the previous session.
Oil prices pared an earlier gain after the report was released to sit just below $63 a barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money