The US Dollar was broadly lower as investors take the cautious route as they await the outcome of a Thursday which could have market-jarring potential. In the UK, voters will go to the polls in the general election to choose members of Parliament; forecasters are still predicting a Conservative win however the margin has narrowed in recent days. In the Eurozone, a monetary policy announcement will be made by the European Central Bank’s chief, Mario Draghi; forecasters are predicting that the ECB will begin to rein in quantitative easing.
As reported at 10:46 am (BST) in London, the GBP/USD was trading at $1.2917, a gain of 0.04%; the pair had earlier hit a peak of $1.29206 before easing back while the session low stands at $1.28873. The EUR/USD was trading at $1.1271, down 0.07% and moving off the session trough set at $1.12459 while the peak of the day is at $1.2828.
Comey Testimony Crucial
In the US on Thursday, all eyes will focus on the testimony of the former head of the Federal Bureau of Investigation, James Comey, who will testify before a Senate committee; analysts believe his testimony could hurt President Trump’s ability to push forth his campaign promises regarding tax reform and increased spending for infrastructure. Dollar trade was caution with the safe haven Yen pushed higher. The USD/JPY was trading at 109.241 Yen, down 0.15%; the pair earlier hit a trough at 109.22 yen, a level not seen since late April.