Forex - Dollar Steady as Trade Tensions Ease, Euro Flat Before ECB
Investing.com - The dollar was steady against a currency basket on Thursday as the U.S. and the European Union stepped back from a trade war, while the euro was little changed ahead of the European Central Bank’s latest policy announcement later in the day.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading at 93.98 by 03:49 AM ET (07:49 AM GMT).
Market sentiment was boosted after U.S. President Donald Trump and European Commission President Jean-Claude Juncker reached an agreement to cooperate on trade.
The two sides agreed not to impose any more tariffs while they keep talking, removing the threat of tariffs on European car imports into the U.S.
Against the dollar, the euro was flat, with EUR/USD at 1.1729.
Investors were looking ahead to the outcome of the ECB meeting later Thursday, but no changes are expected after the ECB announced plans to wind up its massive stimulus program in December at last month’s meeting and pledged to keep interest rates on hold through the summer of 2019.
The dollar fell to almost three-week lows against the yen, with USD/JPY down 0.25% to 110.70.
The pound was little changed, with GBP/USD at 1.3192.