Forex - Euro Hits 2-Week Highs Loonie Pushes Higher

© Reuters. Euro hits 2-week highs, loonie pushes higher

Investing.com - The euro hit two week highs on Wednesday after upbeat comments by a senior European Central Bank official, while the Canadian dollar gained, but remained under pressure amid concerns over heightened trade tensions.

was up 0.42% to 1.1760 by 03:49 AM ET (07:49 AM GMT), the highest level since May 23.

The euro was boosted after the ECB’s Chief Economist Peter Praet said officials are increasingly confident that inflation is rising back towards the banks target and will next week debate its asset purchase program.

The comments came after reports overnight that the ECB’s June meeting could see an announcement on when its monetary stimulus program would end.

Many traders had believed the bank would hold off on giving any new forward guidance this month amid uncertainty caused by .

The euro climbed to two-week highs against the yen, with rising 0.68% to 129.45.

The dollar was also higher against the yen, with up 0.28% to 110.08.

Demand for the dollar continued to be underpinned after strong U.S. employment data on Friday cemented expectations for a by the Federal Reserve and revived expectations for a fourth rate hike this year.

The Fed is widely expected to raise interest rates at its upcoming meeting next week, following on from its last rate hike in March.

The pound moved higher, with rising 0.22% to 1.3419, having risen 0.71% on Tuesday.

Sterling was boosted by services data indicating that the British economy is showing signs of recovering from its recent slowdown, reviving expectations that the Bank of England might raise interest rates in August.

The Australian dollar hit one-and-a-half month highs overnight after data showing that the country’s in the first quarter. was last at 0.7650, not far from an overnight high of 0.7672.

The Canadian dollar pushed higher, with slipping 0.2% to 1.2944, pulling away from Tuesday’s two-month highs of 1.3066.

The loonie and the fell sharply on Tuesday following reports that U.S. President Donald Trump is considering holding separate trade talks with Mexico and Canada, fueling speculation that the U.S. could withdraw from the .

The Mexican peso was near 17-month lows against the U.S. currency, with at 20.41 after rising 1.65% on Tuesday.

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