The euro extended its gains on early Thursday, but still below from its highest level since December 2014 notched on the previous day. This is driven by the on-going concerns from ECB which disrupted the movement of the common currency.
It was last seen higher by 0.1 percent at $1.2197 on the same day, pulling back from an almost three-year high at $1.2323 notched on its last settlement. However, the past declines of the currency has somehow helped the stabilization of the U.S. dollar. The greenback was at gunpoint when major central banks have started a much synchronized recovery of global economy and trimming their monetary stimulus.
On the previous day, the euro immediately declined after the released news that suggested European Central Bank (ECB) policy maker Ewald Nowotny statement that the recent strength of the common currency versus the greenback is not that helpful. He added this incited a profit-taking movement ahead of next week’s policy meeting.
ECB vice president Vitor Constancio said in an Italian newspaper that he did not release any statement regarding ruling out monetary policy. In line with this, LGT Bank’s investment strategist Roy Teo said on the same day that it is normal for ECB officials to mention the euro’s strength, given that the currency broke above the $1.20 handle.
Teo added that they are expecting a risk towards $1.30 before the end of 2018 and it is also unexpected to note that growth in european economies is similar.
In other currency news, the U.S. dollar was almost unmoved against its Japanese counterpart at 111.27 after bouncing from its weakest level in four months at 110.19.