On Thursday, the Greenback took a breather after recent highs, amid optimism over the prospects for the U.S. tax reforms plan and speculation who should lead the Federal Reserve starting early next year which could steer policy in a more hawkish direction. Meanwhile, it is widely expected that U.S. President Donald will announce his Fed chair candidate before his Asian trip in early November.
The euro traded higher vs. the Greenback as markets are awaiting the European Central Bank’s policy meeting. The ECB policy makers could indicate the end of loose monetary policy, while the USD eased from recent highs.
Investors will turn their attention to ECB president Mario Draghi's press conference 45 minutes after the announcement, as they look for further details on how and when the ECB will start eliminating its monthly quantitative easing program.
The single currency rose as much as 0.3% vs. the USD with EUR/USD at $ 1.1816.
On the economic calendar for Wednesday, markets are awaiting the ECB Rate Decision.
The Sterling pound rose as much as 0.38% vs. the Greenback at $1.3213 due to a strong UK strong economic data. The strong UK GDP figure are increasing expectations that the BoE could hike interest rates when it meets next week.
The JPY fell slightly vs. the USD and settled at ¥113.68.
Gold prices recovered from their lowest level in more than 2-weeks, as the Greenback took a pause after its recent rally ahead of the upcoming ECB’s policy meeting later in the day.
Gold Futures - Dec 17 rose as much as 0.3%, to settle at $1,279.33.
Earlier today, Oil prices declined negatively affected by an unexpected hike in U.S. crude inventories and as oil exports and output from the United States increased last week.
Crude Oil WTI Futures - Dec 17 was down by 0.25% at $52.05 and Brent Oil Futures - Dec 17 fell as much as 0.27% at 58.28.
Economic Calendar (all times in GMT)
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