The European currency rebounds Wednesday morning, with the investors focusing on the European Central Bank's meeting slated for the next week.
The euro-to-US dollar exchange rate was recorded at some 1.1752 (some 0.4% up from the previous session). The 10-month bottom was hit at $1.1510 in late May.
The European currency reportedly hit a 2-week peak of 128.95 at the start of the Asian session. The sterling settled close to $1.3422 benefiting from strong results of UK service sector activity figures. It has continued a recovery after collapsing to $1.3205 in late May.
It is rumoured that the euro was bolstered yesterday by the media reports that the Central bank can announce the QE programme shut down at the upcoming meeting.
According to the news reports, Canadian dollar and Mexican peso were depressed by the White House official statement saying that Donald Trump considers a possibility for separate talks with Canada and Mexico. As a result, the fears that the USA can leave NAFTA have escalated.
Specifically, the Canadian currency plunged to some CAD 1.3068 on Tuesday but managed to offset some losses once US Finance Minister called the US President to release Canada from the import duties on steel and aluminium. Noteworthy, Mexico is said to announce duties on US steel and some agricultural products as a countermeasure to Trump's decision to launch tariffs on metals.