The dollar moves higher against rivals on Thursday, as the European Central Bank’s approaching policy decision is closely watched.
EUR/USD slumps about 0.17%, and hit 1.09.
Numbers of analysts anticipates an announcement of fresh measures from the ECB, in order to fight the euro zone deflation, after consumer price inflation posted negative all over again in the previous month, which dives about 0.2%.
Meanwhile, the ECB aims an inflation with just 2%.
Thus, the bank was likely to cut rates once more into negative territory, as well as raise asset purchasing program.
The ECB has reduced its deposit rate already to minus 0.3%, and started pumping worth €60 billion a month into the economy through asset purchases.
Ahead of the market expectations for quantitative easing, investors remained cautious after the bank’s announcement. Meanwhile, the euro substantially rallied.
USD/JPY increased 0.09% to 113.44.
The greenback remained at ease vs. pound, along with the Swiss franc with GBP/USD at 1.42 and USD/CHF at 0.99.
Furthermore, the Australian dollar moves lower, with AUD/USD decline by about 0.11%, hitting 0.74, while NZD/USD surge 0.27% to 0.67
The kiwi has improved from prior losses after the Reserve Bank of New Zealand announced a rate cut to 2.25% from 2.50%, and warned a higher chance of further rate cuts.
USD/CAD rallied by about 0.22% to 1.32
The U.S. dollar increased by about 0.11% at 97.30.
Canadian Dollar surges
On Wednesday, the euro held company in a rough session as investors are eyeing on the result of interest rates that substantially moves lower into negative territory as well as more asset purchases to help the euro zone economy progress.
The Canadian dollar rallied ahead of the announcement of the Bank of Canada, where policy rates remained unchanged and its economic outlook continued steadily as January as current market volatility "appears to be abating."
Furthermore, oil and metal prices recovered bids for the Canadian dollar, along with a few commodity-sensitive currencies, and the Australian and News Zealand dollars.
The global head of FX strategy at BMO Capital Markets Greg Anderson said, "The market is looking nervously ahead of the ECB meeting,"
The deposit rate is anticipated to cut into 10 basis points to -0.40 percent by the ECB, it includes announcements of bond purchases as well as introduce interest rates more likely with the Bank of Japan in a bid to improved inflation.
It appears that a lot of initiatives will threaten the euro. However, analysts stated that ECB policymakers might not be able to respond on easing traders expectations.
Yen moves higher, while the euro decline to a one-week low
The euro declined to a one-week low as the yen moves higher. It was last up by about 0.3 percent and hit 124.55 yen.
The single currency surge 0.2 percent at $1.1028, which recovered from its earlier fall of 0.6 percent against the dollar.
Meanwhile, the euro, along with higher oil and industrial metal prices, wiped out the greenback’s earlier gains.
The dollar index posted weaker with 0.3 percent at 96.96.
London’s Brent crude increased 3 percent at $40.93 per barrel, while copper futures rallied around 1.6 percent to $4,948.50 per tonne.
The Loonie is regarded as Canada’s largest export posted a 3-1/2-month peak against the greenback, which recorded 1.3 percent at $1.3240 in late trade.
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