Euro took a break from a rally as the U.S. dollar briefly escapes from a 15-month low against its major peers on Thursday’s trading session. However it remained fragile to on-going concerns regarding the possibilities of another interest rate hike in the United States.
The dollar has been wobbly due to the geopolitical tension’s surrounding Washington and an unexpectedly weaker economic figures in the stateside; poor inflation in particular. This further ad up to investor’s concerns on when will the U.S. Federal Reserve will begin tightening monetary stimulus.
In relation to monetary stimulus concerns and political uncertainties that have badly hurt the greenback, the euro has been gaining support from projections that the European Central Bank (ECB) would tighten its policy sooner. The common currency eased more than 0.1 percent to $1.1847.
Saxo Market’s sales trading in Asia-Pacific Tareck Horchani suggested that the euro seems to be well supported as it run into some profit-taking before the U.S. employment data release this Friday. He added that the currency is still a buy on dips and it can go further to $1.20.
Meanwhile on the index which measures the value of the U.S. currency against its peers, the dollar index, inched up 0.1 percent to 92.940. On the previous day, the index slipped to weakest level since May 2016 at 92.584.
Both euro and dollar, however, were surpassed by the Japanese yen. Euro declined by 0.1 percent to 110.64 yen and the dollar was marginally lower versus the currency at 110.64 yen.