The European currency holds grounds on Tuesday after the recent upturn. The euro improvement was driven by the anticipation that the European Central Bank will shut down of the asset buying programme and lift the interest rates by mid-2019.
Yesterday the currency added some 0.4% and stays now near $1.2340. According to news reports, the ECB discussion seemed to focus on the interest rate revisions, which consequently supported the euro rate.
The officials find the outlook for the interest rate increase by mid-2019 acceptable, so they are mainly focused on the pace of further increase, reported Reuters citing sources close to the situation.
Positive dynamic vs the greenback was posted by the sterling. The British currency hit a month peak in the pair yesterday after the UK and EU representatives finally managed to come to terms on transition period for Britain. The sterling stays at $1.4056.
In this situation, the US dollar faced strong pressure from higher euro and sterling. As a result, the US Dollar index was seen at 89.88 after touching 90.345 a day ago. For now, the market gives an eye to the Federal Reserve meeting to end on Wednesday. Specifically, everyone is waiting for hints of earlier interest rate revision given better labor marker.