The greenback is trading up against all major currencies in this Wednesday’s European session. The biggest loser is the Aussie, which has shed 0.76% against the dollar. Not far behind is the Kiwi dollar, which has declined by around 0.59%. The euro is currently 0.1% down.
ECB President Mario Draghi gave a speech this afternoon. As he didn’t touch on monetary policy at the press conference, there weren’t any significant price fluctuations.
The EURUSD pair is moving in all directions today on the back of political instability in the UK, as well as the US-China trade war heating up once again.
US President Donald Trump has ordered the United States Trade Representative to begin the process of imposing tariffs of 10% on another 200bn USD of Chinese import goods. If China implements its own retaliatory measures, the US has threatened to impose more tariffs. Further retreat from risky assets is expected.
The euro slid to 1.1695. As of the latest update, it is now trading at 1.1747. On the hourly timeframe, the pair is now sitting on the balance line (sma 55). Increased volume has been observed over the last hour as prices recover.
Now all eyes are on the BoC’s interest rate decision. The key rate is expected to be hiked by 0.25% to 1.50%.