The European Central Bank considered the prospect of lifting interest’s rates before the quantitative easing program ends, this placed euro on a positive track by surpassing the dollar for three weeks straight.
The euro added more than 0.85 percent at $1.0667 against the dollar, strongest compared to last February 16 at $1.0666.
European Central Bank lawmakers had recommended lifting rates from their previous record lows right before QE stimulus ends. However, the conference was abrupt and lacks supporting details regarding the matter.
According to Axel Merk, portfolio manager at president of Merk Hard Currency Fund in Palo Alto, California, he has no clue whether the reports are accurate or not but it shows where they currently stand. He also stated that there is a fundamental shift present, but the said shift is slowly going down.
Merk added that developing euro’s fiscal data has strengthened the ground of recurring growth and inflation. ECB President Mario Draghi pointed out this matter in his statement on Wednesday, followed by central banks March conference.
The dollar index went down earlier right after the release of the U.S. non-farm payroll report which showed wages advanced less than predicted. That lessened the prospects for a series of interest rate hikes this 2017 by the Federal Reserve. The index which tracks the six major currencies of the world dropped 101.380.
The U.S. payrolls beat its expectations by adding 235,000 jobs last month versus the predicted 190,000.
According to CME Group’s FedWatch tool, the futures prices of Federal Reserve’s fund showed investors a 93 percent chance of U.S. overnight interest’s rate hike this March