Euro is at one month highs against the USD after the last ECB communication seems to suggest that we may be at a point were raising rates may be on the books again. Granted it is not something that is iminent but we may be at some kind of a turning point. EURUSD is currently at 1.06732 after hitting highs of 1.0714 earlier this morning.
The dollar fell against its major rivals on Thursday, as the euro jumped during Mario Draghi's press conference as the European Central Bank head suggested it was less necessary to prop up the market through ultra-loose monetary policy.
Dollar remains steady reclaims 102 levels on the US dollar index (DXY). Currently trading at 102.21 the US dollar index, a measure of the value of the USD against a basket of foreign currencies, enters its fourth consecutive day of gains. Propped by yields’ rises on the back of some stronger than expected US ADP employment numbers yesterday.
The dollar edged higher against its rivals on Tuesday but was still below its highs reached in December and January after two weeks in which expectations for a rise in U.S. interest rates this month have soared.
Throughout the course of last night the Reserve Bank of Australia left rates unchanged at 1.5% as widely expected. In his statement RBA Governor Philip Lower said that improved commodity prices, on the back of an improved global economy was affecting positively the Australian economy.