The greenback remained under pressure on Wednesday especially versus the single currency as investors and traders are expecting a prompt decision of raising interest rates by European Central Bank to address the region’s inflation.
The euro gained to 1.3861 against the US dollar on Wednesday as compared to 1.3777 on Tuesday’s North American trading session. The single currency however posted losses in Asian trading session versus the greenback. The Euro is expected to find support at 1.32 against the US dollar however its resistance is expected at 1.40.
Moreover key meeting of ECB is also expected on Thursday in which it is expected the region’s central bank will announce to keep its interest rate at 1 percent which happens to be the lowest in history. However many expect a substantial interest rate hike in coming months for the euro zone.
Chief executive of IG Markets Dan Cook commented, “If oil prices stay dramatically higher for another three or four months, then we might see a hike, It’s just a matter of time before we see those things come back into the headlines and the economy isn’t strong enough.”
The dollar index DXY which measures the US dollar performance versus its six major currency rivals dropped to 76.685 on Wednesday’s North American trading session as compared to 77.049 on late Tuesday.
The British Pound also gained against the US dollar to 1.6329 as compared to 1.6260 on Tuesday late trading hours.
The US dollar also declined 0.4 percent against the Swiss franc on Wednesday. Against the Japanese Yen the greenback witnessed the correction to 81.90 on Wednesday as compared to 81.93 on Tuesday.
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Daily forex trading news written by Rehan from DailyForexTrade.com
