The US Dollar was broadly higher as FX traders consolidated recent positions as markets await today’s release of the ECB’s latest policy meeting minutes. Though the economic and fundamental news have provided some support for the Dollar over the past several days, the gains for the Dollar Index are below 3% for September. The latest economic news showed that the US services sector improved at its fastest pace in more than a decade last month, while ADP reported an upbeat private sector jobs report.
As reported at 11:36 am (BST) in London, the EUR/USD was trading at $1.176, a gain of 0.03%; the pair has ranged from a low of $1.17460 to a peak of $1.17800 in today’s session. The GBP/USD was trading lower at $1.3186, down 0.42%; the pair earlier hit a session trough of $1.3173 while the peak stands at $1.3250. The US Dollar Index, a market gauge for the greenback relative to its major peers, is currently at 0.93520 .DXY, up. 0.062%.
ECB in Focus
Markets expect the ECB to signal that it will begin gradually pulling away from the current ultra loose monetary policy. Markets will also want to assess the language used regarding the Euro’s appreciation to gauge the pace of QE withdrawal and a possible rate adjustment in the future. One FX strategist in London believes that if the ECB is accepting of a strong Euro that will provide a solid lift for the common currency.