The euro was near two-week lows against the US dollar in early European hours on Thursday, as investors looked ahead to a meeting later in the day. The central bank is expected to cut growth forecasts and give the strongest signal that new stimulus will come in the form of cheaper loans. Through this trading news you are able to learn forex more.
Euro Depressed at 2-Week Low Range
Loans, known more formally as Targeted Long-Term Refinancing Operations (TLTRO), are expected to increase troubled eurozone lenders. The euro is at $ 1.1309 after falling to $ 1.1284 the previous day, the weakest level since February 19. Meanwhile, the US dollar index, which measures the greenback's strength against a basket of six major currencies, was little changed at 96.82.
The dollar was steady against the Japanese yen at 111.74, still seen from 2-1 / 2-month peak at 112.13. The British pound hit the water at $ 1.3165 amid ongoing concerns about next week's parliamentary elections on Brexit. Among other G10 currencies, the Canadian dollar held near the previous session's two-month low as traders raised bets that the Bank of Canada (BoC) will delay a rate hike this year. Learn forex more on Didimax through their free trading news.
Euro approaches 21-month lows
The euro struggled near a 21-month low against the US dollar on Friday, pressured by a series of dovish signals from the European Central Bank, with currency markets preparing for further volatility ahead of US jobs data today. The euro was at $ 1.1197 after falling 1 percent on Thursday to touch $ 1.1176, the lowest since June 2017. The currency has fallen 1.5 percent so far this week.
The euro hit a big blow on Thursday after the ECB postponed a return to the time of its first post-crisis rate hike until 2020, cutting its economic forecast and launching a new round of cheap bank loans. The February US jobs report due for release today could put pressure on the deteriorating euro. Economists surveyed by Reuters estimate will see 180,000 jobs added in the United States last month, after two months of shocking growth.
Whether the dollar can remain on an uptrend in the long term is debatable, but for now a strong US jobs report will provide further encouragement for the currency, which in turn will weigh on the euro, after the ECB meeting and shackled with Brexit misery.
The Australian dollar was at $ 0.7015, after dropping 0.9 percent this week and hit a two-month low of $ 0.7005 after data showed the economy grew at the slowest pace in two years. More about this on Didimax, a broker website with trading news you can read to learn forex.
Euro Strengthens from Low After ECB Meetings
The euro tried to strengthen on Friday in the European session from the lowest level on Thursday after the European Central Bank cut its economic growth estimate and failed to convince the market with its plans to stabilize the euro zone economy. Analysts say the ECB is only drawing attention to the lack of progress in the region in overcoming its institutional and structural weaknesses.
The euro was at $ 1.1211, up around 0.3 cents from a two-year low reached after the ECB President Mario Draghi's press conference. The dollar had hit a low of $ 1.1175 overnight, the lowest against the dollar in almost two years. The ECB estimates validate market concerns about a global economic slowdown and are further strengthened by overnight data showing a sharp decline in Chinese exports in January. The market will see the U.S. monthly payroll report, scheduled for 20.30 WIB, to ensure that the three largest economic blocs in the world are not stagnant at the same time.
