“Trading ranges remain noticeably compressed ahead of next week’s central bank meetings,” said Corpay’s Karl Schamotta.
Traders expect the Fed to raise rates by 25 basis points (bp) next Wednesday, below the 50 bp increase in December. Meanwhile, the ECB has almost committed to raising its benchmark rate by half a percentage point next week.
The euro rose 0.2% to $1.0917, not far from the nine-month high of $1.0927 hit on Monday. The dollar was down 0.5% against its Japanese peer at 129.615 yen, after hitting a nearly eight-month low of 127.215 on January 16.
Besides, The Australian dollar was trading at its highest in more than five months., after better than expected inflation data reinforced the idea that the Reserve Bank of Australia will continue to raise interest rates. The currency was up 0.5% at $0.7099.
The pound sterling gained 0.4% against the dollar, after reports that UK manufacturers unexpectedly lowered their prices in December, suggesting inflation may be subsiding, ahead of next week’s Bank of England policy meeting.
Source: Ambito
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