The movement of major currencies reversed direction as the market entered the European session, seeing euro trading rise ahead of the European Central Bank (ECB) policy meeting tonight.
The rise followed the depreciation of the greenback dollar, which brought the dollar index traded down around 0.15% to 92.56.
The euro posted a slight gain by trading at 1.1835 against the US dollar, as the market expected the central bank to announce a reduction in its asset purchases tonight.
The pound rose higher in the European session, with it re -trading above 1.3800. Among other factors supporting this surge may be due to the proposed tax hike by Prime Minister Boris Johnson having been approved by policymakers.
Investors are still digesting the latest statement from the Bank of England (BOE) dismissing the possibility for a faster stimulus easing. Although the minimum conditions for raising interest rates have been met, the recovery is still not strong enough.
Following the development of commodity currencies, the loonie dollar remained traded lower after the decision of the Bank of Canada (BOC) policy meeting kept monetary policy unchanged.
On the other hand, the Aussie and New Zealand dollars also rose, but the gains recorded were limited, weighed down by uncertainty from the Covid-19 outbreak that dimmed the prospects for a recovery.
