US Dollar loses some ground before the ECB meeting
US dollar edged lower in early European trading on April 30. Traders are facing the mixed signals about the possibility of more relief from central bank and the data concerning the impact of the pandemic on the world’s economy.
At 07:05 the US Dollar Index lost 0.1% and ended up at 99.523. EUR/USD gained 0.1% and reached 1.0884. GBP/USD earned 0.1% and reached 1.2471. USD/JPY dropped 0.1% and ended up at 106.56.
The attention of the traders has shifted from the Fed to the European Central Bank. On April 30 the governing council is planning to make a ruling if over 1 trillion euros in asset buying together with a boosted lending plan will suffice for the effort of stabilizing the economy.
Some experts expect the bank to reveal an addition of 500 billion euros to the bond acquisition project. The position of the euro in the near future might be determined by the decision made today.
The meeting takes place European Central Bank on the same day as the announcement of the largest falls of the GDP in a single quarter in the last ten years. French GDP lost 5.8%, Spanish GDP contracted by 5.2%. The results for the whole eurozone are expected to come at 09:00.