USD index continued its losses against the basket of six major currencies at 95.76 on Wednesday, USD was under pressured by the increase in GBP and CAD prices as the BOE and Bank of Canada hinted for a tighter monetary policy soon.
BOE’s governor said that, there is no need to increase the current interest rate, and the MPC members will discuss some issues in the coming months, hinted that the interest rate hike may be in the pipeline. Also, the BOE’s Governor suggested that, it might be necessary to remove some of monetary stimulus due to the shrink in the spare capacity of the economy. GBP appreciated against the USD at 1.2973.
Although, the ECB said that, the comments of the president of ECB Mario Draghi on a day before has been misjudged by the markets, EUR appreciated against the USD at 1.1378. EUR supported by the upbeat comments by Mario Draghi, where he said that the ECB stimulus measures might be removed due to the recovery in the Eurozone.
After the Governor of Bank of Canada said that, the rate cuts from 2015 have done their jobs and after and the interest rate might be increase, CAD appreciated against its US counterpart, where USDCAD traded at 1.3039 reaching the lowest price since four months. Meanwhile USDJPY was trading at 112.20
Elsewhere in Asia, AUD and NZD have been appreciated against their U.S counter par at 0.7612 and 0.7289 respectively as the vote on U.S Health care has been delayed. U.S Senate republicans faced some resistance from some members, and this led to delay the vote on Trump administration’s healthcare bill.
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