The long-awaited day has finally arrived, showing the currency market moving calmly as investors ’focus is now on the European Central Bank (ECB) policy meeting.
While there is no expectation of an interest rate change from the central bank, the market expects an increase in July and also expects indications of a rate hike above 25 basis points.
The central bank is also almost certain to end its asset purchase program by the end of this month as promised earlier.
As a result, the euro traded steady amid a strengthening US dollar and rose to a 7-year high against the Japanese yen.
The widening monetary policy disparity gap between other major central banks and the Central Bank of Japan (BOJ) puts the yen far into the bottom against most major currencies.
Meanwhile, the latest Covid-19 control measures are back underway in Shanghai, when another district was closed for massive coronavirus testing after seeing a surge in cases following the reopening of the city last week.
This gloomy factor slightly hampered the movement of risk -sensitive currencies namely the Aussie and New Zealand dollars to depreciate in the Asian session.
The Canadian dollar remained stable, supported by higher crude oil prices approaching a 14 -year high.
