EUR/USD
The euro edged higher against the greenback, but sentiment on the single currency remained vulnerable amid growing expectations the European Central Bank will embark on an outright quantitative easing program on Thursday, in a bid to stave off the threat of deflation in the euro area.
GBP/USD
The pound fell against the U.S. dollar on Wednesday, re-approaching 18-month lows despite upbeat U.K. jobs data as the minutes of the Bank of England's latest meeting minutes showed a new consensus in favor of keeping interest rates on hold. According to the Office for National Statistics the U.K. unemployment rate dipped to 5.8% in the three months to November from 6.0% in the previous three month-period and better than expectations for a reading of 5.9%. The report also showed that the claimant count fell by 29,700 last month, compared to expectations for a decline of 25,000 people. Separately, the minutes of the Bank of England's January policy meeting showed that members voted unanimously to keep the asset purchase facility program on hold. Members also voted unanimously for the first time in five months to keep interest rates unchanged at a record-low 0.5%.
USD/JPY
The yen strengthened after the Bank of Japan held off on expanding its monetary easing scheme on Wednesday and expanded a loan scheme aimed at boosting lending. The BOJ maintained the size of its stimulus program and reiterated its pledge to increase base money at an annual pace of ¥80 trillion through buying government bonds and risk assets. The central bank also cut its core inflation forecast 1% from 1.7% three months ago.
