Dollar beats euro ahead of a less hawkish ECB statement

Dollar beats euro

The European currency was lower versus the U.S. dollar on Thursday’s session following the statement of European Central Bank’s chief Mario Draghi saying law makers did not mention omitting the bank’s monetary policy. The U.S. currency also surpassed the Swedish crown as the Riskbank prolonged its bond purchasing.

Judging by an upbeat euro zone’s figures, several ECB rate-setters see outlook for posting a minimal indication in June towards minimizing a monetary stimulus had heightened prospects for a hawkish stance. BK Asset Management’s managing director Kathy Lien says the remarks of Draghi were not hawkish and the markets seem frustrated about it.

The euro slightly advanced by $1.0932 on the back of ECB’s comments that was relayed by Draghi. The note suggested that the recovery of the euro zone was getting stronger and the risk of falling was unlikely. However, the other parts of the comments along with Draghi’s response to questions pressured the barriers the ECB is enduring before starting to limit the financing conditions it has preserved since 2008.

Riskbank in Sweden forecasted its very first rate hike in mid-2018 and has prolonged its bond-buying. This dragged the dollar higher by 1.3 percent versus the Swedish crown to a session high of 8.8730 crowns a dollar.

In other currency, the U.S. dollar was weaker by 0.17 percent versus the Mexican peso at 19.0432 pesos. This is after the statement of U.S. President Donald Trump saying he would not terminate the North American Free Trade Agreement treaty.

Elsewhere, the Bank of Japan also indicated that it is ought to preserve its extensive stimulus effort, regardless of it giving its most positive evaluation on the country’s fiscal health. Predictions over the future price hikes are still controlled and have frustrated traders that are anticipating for a less-dovish inflation perspective.


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