US dollar has strengthened vs the majors on Wednesday. The European currency has taken a break having exceeded the peak over more than 3 years during the night trading on the forecasts of possible cancelation of stimulus programme by the European Central Bank.
The euro-to-US dollar rate decreased 0.31% to 1.2222, following a night upturn to 1.2323.
The European currency has been on the rise since last week driven by the announcement of the minutes of the European Central Bank's December meeting. Specifically, the report read that the officials intended to gradually revise policy outlook in early 2018. Investors consider any changes in ECB's statements as a signal that there are preparations for shutting down bond-buying programme.
The US Dollar Index improved 0.28% to 90.48. Notable, a 3-year bottom of 89.98 was reached over the night.
The US dollar felt pressure from the expectations that the growth of the global economy would exceed US rates and force central banks of other countries to tighten monetary policy earlier.
USD to JPY moved up from the 4-month low at 110.18 recorded overnight and gained 0.31% coming to 110.79.
AUD and NZD weakened vs USD: AUD-USD changed hands at 0.7945 and NZD-USD – 0.7241.
The Sterling dipped against the US dollar: GBP-USD fell 0.22% to 1.3761 (1.3835 during the night trading).
CAD posted a decline with USD-CAD adding 0.16% to 1.2453. For reference, the Bank of Canada is about to announce further monetary policy – interest rate is expected to be expanded from 1% to 1.25%.