Euro Recovers Post-ECB Decision, Dollar Pares Gains
The euro erased losses as traders pulled back wagers on future interest-rate cuts by the European Central Bank after officials held borrowing costs steady Thursday. A Bloomberg gauge of the dollar pared gains in subdued New York trading.
EUR/USD little changed at 1.1771, earlier edging higher after ECB decision and press conference.
ECB President Christine Lagarde said the central bank is in “wait-and-see” mode as policymakers left deposit rate steady, at 2%, for the first time in more than a year.
The Bloomberg Dollar Spot Index gains less than 0.1% and looks to avoid five straight daily losses, which would be worst run since since April.
One-month implied volatility on BBDXY falls to some 7.34%, the lowest since February, even as key risks like Fed meeting and Aug. 1 trade deadline loom.
Dollar supported alongside Treasury yields after lower-than-expected US jobless claims.
USD/JPY gains less than 0.1% to 146.62 with focus on market impact of US-Japan trade deal
In Asia, leveraged funds sold the pair after US Commerce Secretary Howard Lutnick said Federal Reserve Chair Jerome Powell should resign or be replaced, according to traders.
Source : Bloomberg
