Waiting for the moment of the European Central Bank (ECB) policy meeting, the euro currency traded little changed against the US dollar, but higher against the Japanese yen and pound trading.
After various indications given by several previous ECB policymakers, the central bank will almost certainly end its asset purchase program by the end of this month and promise an interest rate hike in July.
Still, if the central bank continues to raise rates tonight or gives an indication of the size and rate of tightening to be implemented, the euro has the potential to soar higher.
Investors now expect soaring inflation in the European Zone will push the ECB to act more aggressively with a 50 basis point increase.
On the other hand, the yen continued to extend its decline to its latest 20 -year low against the US dollar and a 7 -year weakest against the euro.
The ninja currency has been affected by rising interest rates around the world while the Central Bank of Japan (BOJ) has continued to remain on a very loose policy.
The greenback continued to maintain its strength with market focus also targeted on key US inflation data on Friday, besides also benefiting from investor vigilance on new news from China.
During the Asian session, the city of Shanghai reported another district was closed for massive coronavirus testing after witnessing a surge in cases following the city’s reopening last week.
