In the European market on Wednesday, the US dollar index was higher, but trading was light. The pound is close to a two-month high, thanks to the veto of a controversial bill on Brexit by the British Parliament. The New Zealand dollar hit a one-year high after the Bank of New Zealand temporarily ruled out a negative interest rate policy.
As of 17:21 Beijing time (04:21 AM Eastern Time), the US dollar index futures, which measures the trend of the US dollar against the six major trade-weighted currencies, rose 0.13% to 92.852.
The euro/dollar fell 0.14% to 1.1797; the dollar/yen rose 0.16% to 105.45. The Australian dollar, which is highly sensitive to risk sentiment, fell 0.15% to 1.1796.
Since today is Veterans Day in the United States, the US bond market is closed, and no important economic data has been released. It is expected that trading activities in the foreign exchange market will be relatively sluggish.
An ING analyst said: “There is no important economic data in the United States today, and the foreign exchange market may consolidate after the recent sharp fluctuations (especially emerging market currencies).”
On Wednesday, the market focus may turn to the European Central Bank’s two-day annual central bank forum, where the central bank previously released clues on monetary policy trends.
However, this forum may not reveal more information about future monetary policy trends. Earlier, the European Central Bank had stated that it would launch new monetary stimulus measures in December, but traders still need to pay attention to European Central Bank President Lagarde ( Christine Lagarde)’s views on European economic prospects.
In addition, The Netherlands International Group also stated, “Today, there may be some news about the encouraging progress of the EU Recovery Fund, which may drag the euro-dollar exchange rate back to the 1.1920 range.”
GBP/USD rose 0.12% to 1.3288, close to a two-month high. The market is increasingly optimistic that the UK and the EU will reach a trade agreement.
It is reported that the British House of Lords has rejected the “Internal Market Act” that violates the Brexit agreement, which has removed an important obstacle for the UK to reach a trade agreement with the EU.
The New Zealand dollar/US dollar rose 0.95% to 0.6893, climbing to its highest level in more than a year. Previously, the Bank of New Zealand did not adopt negative interest rates, but agreed to launch a new loan financing plan in December to provide banks with low-interest loans to further reduce borrowing costs. The Bank of New Zealand also stated that the government has successfully contained public health incidents and weakened market expectations that the Bank of New Zealand will implement negative interest rates.