Euro Hits One-month High on ECB’s Rate-hike Talk, Dollar Awaits Fed Meeting
Mar, 13th 05:41
The euro hit an over one-month high versus the U.S. dollar in Asian trading hours on Monday on the back of the European Central Bank policy meeting last Thursday where some of its policymakers said interest rates may have been hiked before bond purchases end.
The pair EURUSD surged more than 0.1% to break though the $1.07000 threshold. The pair traded at the highest level since Feb. 9 at $1.07053 in the second half of Asian trading. Some members of the ECB’s Governing Council on Thursday discussed the possibility of higher interest rates before the end of its quantitative easing program. Although the talk on the issue was brief and did not receive broad support, the single currency has been received great support.
On the other hand, markets were waiting for the U.S. central bank’s meeting due later this week with high expectation of a rate increase. According to CME Group’s FedWatch tool, Fed fund futures prices showed investors pricing in more than a 90 percent chance of an increase in U.S. overnight interest rates.
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