The Euro backed off its recent 10-day trough versus the US Dollar as FX traders ponder the latest less dovish words from ECB officials. On Monday, one member of the governing council, Christian Noyer, echoing the words recently spoke by another ECB official, said that the current QE scheme was not in need of any adjustment. According to the two officials, other, different ways need to be found to stimulate the EU economy, not necessarily more easing. Because the officials don’t necessarily speak for the ECB head, Mario Draghi, investors remain wary of what might happen at this week’s policy decision.
As reported at 11:54 am (BDT) in London, the EUR/USD was trading at $1.1371, a gain of 0.35% and only a few pips from the session high; the pair ranged from $1.1323 to $1.1375. The EUR/JPY is also higher at 135.9280 Yen, a gain of 0.40%, while the EUR/GBP is 0.7339 Pence, a rise of 0.16%.
Loonie Lifted after Surprise Election Outcome
In Canada, the Canadian Dollar recovered after Monday’s fall in the wake of an election that resulted in a surprise win for the Liberal party. Currently, the USD/CAD was essentially flat at C$1.3018, a gain of 0.02% for the greenback; earlier, the pair had hit a session trough of C$1.2987. Despite the relative weakness of the Canadian Loonie in the wake of the decline in oil prices, there is hope that the new government will find other ways to help the Canadian economy recover.