Euro steady ahead of ECB yen dips after BoJ

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Euro steady ahead of ECB yen dips after BoJ

 

On Thursday, the euro slightly changed against the US dollar, as investors waited for new signals from the European Central Bank about the future of its stimulus program, while the yen was able to continue after the monetary policy of the Bank of Japan continued.
EUR / USD is trading at 1.1510 at 03.48 m. Eastern time (07.48 min.), Not far from 14-month highs on Wednesday, reaching 1.1582.
The expectation awaited the meeting after ECB President Mario Draghi sent the euro higher with fierce comments about the euro zone recovery in a speech in Sintra, Portugal, late last month.
These comments seemed to indicate a shift to a narrow monetary stimulus, but Draghi also confirmed that any changes in the incentive program would be "gradual" and "cautious."
The ECB faces a balancing act between the reduction in incentives, as the economy intensifies, and markets remain nervous, and inflation remains below the bank's target close to the price, but slightly less than 2%.
The yen depreciated against the dollar, with the pair USD / JPY rising 0.18% to 112.14 after BoJ said that inflation risks were distorted downward, reinforcing expectations that it will lag behind other central banks in stricter monetary policy.
The US dollar index, which measures the strength of the dollar against a weighted basket of six major currencies, rose 0.15% to 94.78, which is still close to the 11-month low of 94.27, touched on Tuesday.
The dollar collided with pressure amid growing speculation that a relaxed inflation forecast would undermine this case when the Federal Reserve again raises interest rates this year, politicians say.
The prospect that other central banks can join the Fed in tightening the policy also contributed to the weakening of the dollar.
The dollar also came under pressure, as Republicans' unsuccessful attempts to reform health care showed that other legislative efforts by President Donald Trump, such as a review of the tax code and the introduction of tax incentives, could be difficult.
Meanwhile, the Australian dollar fell lower: AUD / USD fell 0.28% to 0.7929, as investors gained profit after the Australians reached a two-year high of 0.7988 per night, helped by an optimistic performance report.