For two consecutive days, the common currency Euro has edged higher versus the US Dollar in anticipation of the Federal Reserve Bank’s 2-day policy meeting which will either meet or dash expectations of an imminent rate hike in interest rates. The Euro had been under singular pressure ever since the ECB announced the beginning of a new QE scheme that, at its conclusion, will have injected some €1 trillion into the forlorn Euro-area economy.
As reported at 9:58 am (GMT) in London, the EUR/USD was trading at $1.0589, a gain of 0.2% and off of Monday’s 12-year trough set at $1.0457. The EUR/JPY was trading at 128.6090 Yen, a gain of 0.28% while the EUR/GBP was trading at 0.7174, a gain of 0.62%.
Dollar Softens on Sour Data
The US Dollar Index, which investors use to measure the greenback’s strength against major rivals, has been trading almost 0.1% lower on the Euro’s recovery, slight as it may be; the Index is currently trading at 99.480 .DXY. The Index is also being weighed down by yesterday’s unexpectedly disappointing economic data from the US, in particular in the manufacturing, industrial production and housing sectors, which effectively cooled Dollar appetite. Despite that, analysts still anticipate that the Fed chief, Janet Yellen, in her speech at the conclusion of the meeting, will clearly hint at an interest rate increase, likely early in the summer.