On Friday, the dollar holds onto modest gains against other major currencies amid subdued trade, as it bounces from losses posted after the European Central Bank’s president Mario Draghi announces no further rate cut.
EUR/USD lost about 0.73% to 1.10, which drags it from the prior session’s peak level at 1.12 of one-month.
The euro jumped after the ECB announced on Thursday that there’s no further rate cut. Draghi added that there might be a chance for changes.
Meanwhile, the single currency continued to struggle as the ECB began cutting its benchmark interest rate to a record-low of which settled from 0.05% to zero. However, investors anticipate the rates to remain unchanged.
Furthermore, the ECB planned on improving its quantitative easing program and pumped worth €20 billion per month to €80 billion, effective this month of April.
USD/JPY rallied by about 0.55%, hitting 113.82.
The greenback posted lower vs. pound, with GBP/USD up by 0.08% at 1.4293, recording nearly three-week high of 1.43, and continue to remain higher against the Swiss franc, with USD/CHF which jumped by about 0.17% to to 0.98.
In addition, according to the U.K. Office for National Statistics, the trade deficit shortened to £10.29 billion in January from £10.45 billion in December. It appears that it was revised from the initial deficit worth £9.92 billion.
However, analysts anticipate the trade deficit to settle at £10.3 billion in January.
The Australian and New Zealand dollars remained stronger, as AUD/USD surges by about 0.74% at 0.75, while NZD/USD added 0.31% to 0.66.
Meanwhile, USD/CAD bounces 0.63% to 1.32. As oil prices began to rally, and its three-month highs soared above $38 a barrel, demands from commodity-related rose.
The U.S. dollar index, which measures the strengthening dollar against a basket of major currencies, climbs by about 0.48% in 96.65, posting higher from the prior session’s one month lows of 95.94.
The pound remains unchanged
On Friday, the pound was nearly no change vs. the greenback, which soared close to a three-week high after the U.K. trade deficit narrowing was announced.
GBP/USD settled at 1.42 amid the morning session. The currency pair consolidated at 1.42.
Cable remained steady at 1.41, Thursday’s low and resistance settled at 1.44, a February-month high.
The U.K Office for National Statistics reported that the trade deficit of the country appears to narrow to £10.29 billion in January from £10.45 billion in December, the figure was then revised for an initial deficit worth £9.92 billion.
Analysts are expecting the trade deficit to post at £10.3 billion in the month of January.
The pound finds support ahead ECB’s announcement with no further rate cut, but warned it could be possible for a change.
After the ECB began cutting the benchmark interest rate to a record-low settled from10.05% to zero, the comments came, while investors anticipate rates to remain unchanged.
The ECB proposed on advancing its quantitative easing program is funded amounting to €20 billion per month to €80 billion, effective April.
Sterling posted higher vs. the euro, with EUR/GPB diving by 0.60% to 0.77.
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