Forex - Euro Rises above $1.18 on ECB Tapering Bets

© Reuters. Euro rises above $1.18 on ECB tapering bets

Investing.com - The euro gained ground on Thursday, building on the previous day’s gains after hawkish European Central Bank comments fueled expectations that it will soon start scaling back its monetary stimulus program.

was up 0.47% to 1.1829 by 04:03 AM ET (08:03 AM GMT), the highest level since May 22. The euro has risen around 1.47% against the dollar so far this week.

The single currency was boosted after ECB Chief Economist Peter Praet said Wednesday that officials are increasingly confident that inflation is rising back towards the bank’s target and will next week debate whether to begin .

The remarks fueled speculation that the ECB’s June meeting could see an announcement on when its massive bond purchase program would end.

Many traders had believed the bank would hold off on giving any new forward guidance at its meeting this month amid uncertainty caused by political developments in Italy.

The euro rose to two-and-a-half week highs against the yen, with rising 0.25% to 130.06.

The dollar was lower against the yen, with losing 0.25% to trade at 109.89, pulling away from Wednesday’s two-week highs of 110.26 as investors took profits.

Demand for the dollar continued to be underpinned by expectations for a by the Federal Reserve at its upcoming meeting next Wednesday.

The , which measures the greenback’s strength against a basket of six major currencies, was down 0.38% to 93.25 as the stronger euro weighed.

The pound rose to more than two-week highs, with up 0.37% to 1.3465.

Sterling remained supported after services data earlier in the week indicated 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.

Investors were continuing to monitor developments related to heightened trade tensions, given that with other Group of Seven leaders at a weekend summit in Canada.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read Again Forex - Euro Rises above $1.18 on ECB Tapering Bets : https://ift.tt/2Lu5CP9

Let's block ads! (Why?)