The euro gained on Monday and the dollar dropped as last week's strong U.S. jobs numbers and receding fears over a trade war helped a rebound in risk appetite, with higher yielding currencies also performing well.
The dollar rose against a basket of major currencies despite the prospect of global trade war as President Trump is expected to follow through with plans to impose tariffs on steel and aluminum imports.
The U.S. Dollar is starting to firm up while non U.S. currencies have stalled. The one here which may be a buy is the Canadian Dollar which has been slammed from highs at 8175 in late January to lows overnight at 7700.
The euro slipped to a seven week low on Thursday, as investors bet that monetary policies willdiverge in the euro zone, where interest rates look set to stay at record lows throughout 2018, and the United States, where as many as four hikes are expected.
The euro zone economy, for so long a source of uncertainty, has enjoyed its best year in a decade, clear evidence it has broken out of the prolonged debt crisis that raised fears about the very survival of the euro currency.
The euro jumped against the dollar on Thursday after the European Central Bank said it could revisit its communication stance in early 2018, boosting expectations that policymakers are preparing to reduce their vast monetary stimulus program.
The dollar fell on Thursday, failing to hold the previous session's gains on the back of upbeat U.S. data and minutes from the Federal Reserve, as the euro resumed a rally that has taken it close to its highest levels in three years.
The Pound will rise against the Euro in the year ahead as markets awake to the realization the UK is headed for the "softest of all possible Brexits", say strategists at BMO Capital Markets, the investment banking unit of Bank of Montreal.
The U.S. dollar gained against the euro on Thursday after the European Central Bank raised growth and inflation forecasts for the euro area, but stuck with its pledge to provide stimulus for as long as needed.
Foreign Exchange Market (Forex): EUR/USD fell slightly during the session on Wednesday, as we look likely to roll over due to the recent sell off that we have seen due to a more dovish Mario Draghi than previously expected.
Foreign Exchange Market (Forex): The dollar held weaker against the yen on Thursday in Asia as investors looked ahead to an announcement on the new Fed chief by President Donald Trump possibly this week.
Foreign Exchange Market (Forex): The United States dollar was weaker versus major rivals on Wednesday after the release of minutes from the latest Federal Reserve meeting showed consensus gelling around one more rate increase this year but tempered by concerns about sluggish inflation.
Foreign Exchange Market (Forex): The Dollar Spot Index has a heavy bias towards the EUR and, with the EUR one of the favoured funding currencies in carry trades, unsurprising considering the negative deposit rate and record low interest rate; bouts of risk aversion reverse carry trades driving demand for the EUR.
Foreign Exchange Market (Forex): The United States dollar shone while Asian shares slipped slightly on Thursday after the United States Federal Reserve announced a plan to start shrinking its balance sheet and signaled one more rate hike later this year.
Foreign Exchange Market (Forex): The dollar briefly spiked before retreating against a basket of the other major currencies on Thursday after the latest United States inflation report showed that consumer prices rose in August at the fastest rate since January.
Foreign Exchange Market (Forex): European Central Bank (ECB) Governing Council member Ewald Nowotny said last week that the euro's recent rise shouldn't be "over-dramatized," a notion that economists seem to agree with.
Foreign Exchange Market (Forex): The dollar continued its comeback from a two-and-a-half-year slump, buoyed by a pair of economic reports that topped economists' forecasts, raising investor expectations for solid third-quarter economic growth.
Foreign Exchange Market (Forex): The dollar traded near three-week highs against a basket of global currencies on Wednesday, after recent economic data pointing to a strengthening United States economy lifted expectations of a third rate hike later this year.
Foreign Exchange Market (Forex): The dollar eased from session highs against a basket of global currencies on Wednesday, as geopolitical tensions between the U.S. and North Korea intensified, lifting investor demand for safe havens like gold and the yen.