US dollar posts gains, Euro stable on recent hikes

Posted 17 January, 2018

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%.

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17 January, 2018 13:37

← European Central Bank not likely to back on bond buying words at upcoming meeting

European Central Bank is unlikely to recant its promise to keep sticking to bond-buying policy at the next-week meeting since the officials need more time to estimate the forecast for the economy and euro, as sources reported. Last week ECB expressed higher intentions to revise its policy guideline in early 2018, including further bond-buying activity till inflation returns to bank's target.

European Central Bank not likely to back on bond buying words at upcoming meeting

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16 January, 2018 17:11

US dollar up vs euro, yen and sterling →

The US Dollar index is reportedly rising on Tuesday after the decline over the previous four sessions. ICE index went up by 0.2%, while earlier it had touched a 3-year bottom. As traders believe, the current rebound is a break in active dollar sales, reported a source. The US dollar-to-euro exchange rate has been minimal since December 2014, which is explained by shifting of traders’ attention...

US dollar up vs euro, yen and sterling
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