The Euro steadied and remained close to a 3-week peak during early trade in Europe as markets count on volatility in the run up to the policy meeting of the European Central Bank. Analysts expect that Mario Draghi, the chief of the ECB, will provide new guidance on the bank’s QE scheme. Markets are still adjusting to Sunday’s vote in Italy which resulted in the resignation of the prime minister and which caused the common currency to fall to a 21-month trough before recovering. Economic data from Germany helped to give the Euro a solid boost, with industrial orders rising to a 2-year high.
As reported at 9:55 am (GMT) in London, the EUR/USD was trading at $1.0772, a gain of 0.06%; the pair has ranged from a session low of $1.0733 to a peak of $1.0785. The EUR/GBP was down 0.19% to trade at 0.8442 Pence, while today’s trading band ranged from 0.8415 Pence to 0.8470 Pence.
Aussie Loses Ground on Cautious Tone
The Aussie Dollar lost ground after the central bank there left interest rates on hold as expected, however forward guidance was notably more cautious on future growth prospects. The AUD/USD pair was trading at $0.7444, down 0.37%; the pair had earlier hit a trough of $0.7426 while the session high was at $0.7483.