Forex Marketz Daily Forex News – Fully Markets Update
This morning, during Asian trade hours, the euro held onto yesterday’s gains. Traders are betting that the European Central Bank would raise interest rates sooner than previously expected.
The benchmark EUR/USD Forex market was last fetching $1.2341. The common currency gained 0.4 percent on Monday.
On Monday, the euro had been supported on news that European Central Bank policymakers are starting to shift the debate to how steeply interest rates should rise this year. Also they will discuss to phase out the central bank’s bond buying program after purchasing 2.5 trillion euros over the past three years.
The British Pound edges Higher with the Euro
Along with the euro, the British Pound edged higher to a monthly high against the dollar during Monday’s trade. Britain and the European Union agreed to a 21-month post Brexit transition period. This is a potential solution to avoid a “hard border” for North Ireland.
The GBP moved up 0.1 percent to $1.4035 this morning. On Monday, the GBP hit a high of $1.4088. This was its highest price level since February 16.
The strength in euro and British Pound weighed on the U.S. dollar. The sawbuck last traded at 89.870 in its currency index. This was down from Monday’s intraday high near 90.345.
Forex traders are waiting on the U.S. Federal Reserve. The FOMC holds there two day monetary policy meeting that ends Wednesday. They are expected to raise rates and should signal a faster pace of rate hikes over the coming months as the labor market recovers.
The Fed is expected to raise rates by 25 basis points to a range of 1.50 percent and 1.75 percent.
