Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Edges Lower; Euro in Spotlight Ahead of ECB Meeting

ForexApr 22, 2021 02:58AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - The dollar weakened in early European trading Thursday, remaining near to multi-week lows, with the euro in focus as the European Central Bank meets.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was 0.1% lower at 91.013, just above the seven-week low of 90.856 seen on Tuesday. 

USD/JPY was down 0.2% at 107.84, GBP/USD rose 0.1% to 1.3940, the risk-sensitive AUD/USD rose 0.1% to 0.7755, while EUR/USD traded 0.1% higher at 1.2043, after touching a seven-week high of 1.2079 earlier in the week.

Investors have also turned away from the greenback as U.S. Treasury yields reversed their climbs in March 2021, and an auction of 20-year Treasuries drew strong demand on Wednesday, which also helped to cap yields.

The benchmark 10-year Treasury yield was last seen around 1.53%, around the lowest it has been since mid-March, a sharp move lower from the 14-month high at 1.7760% reached at the end of last month.

Still, most attention Thursday will be on the European Central Bank, as it hands down its latest policy decision later in the day. The central bank is widely expected to maintain its current policy, but any positive comments from the central bank about the economic outlook or hints of tapering bond purchases are widely expected to boost the euro, especially after it said at its last meeting that it would step up net asset purchases to curtail the rise in bond yields.

“With the euro below its multi-quarter average and the European Central Bank already announcing front-loaded purchases in March, the April ECB meeting should have a muted impact on the single currency,” said analysts at ING, in a note. “Instead, the focus will be on improving eurozone data in coming months, and with EUR/USD still trading cheap, further upside lies ahead.”  

Elsewhere, USD/CAD fell 0.1% at 1.2480, continuing Wednesday’s selloff after the Bank of Canada tapered the pace of weekly bond buying to C$3 billion per week from C$4 billion, becoming the first G-10 central bank to rein in its bond buying program.

"The outlook has improved for both the global and Canadian economies. Activity has proven more resilient than expected in the face of the COVID-19 pandemic, and the rollout of vaccines is progressing," the BoC said in a statement.

USD/TRY rose 1.5% to 8.3075, with the lira continuing to weaken amid questions of the extent of foreign-currency reserves the central bank used in an attempt to prop up the domestic currency over the last couple of years, a period when President Recep Tayyip Erdogan’s son-in-law Berat Albayrak was treasury and finance minister.

Dollar Edges Lower; Euro in Spotlight Ahead of ECB Meeting

Related Articles

Dollar Edges Higher; Inflation Data Looms Large
Dollar Edges Higher; Inflation Data Looms Large By - May 12, 2021 1

By Peter Nurse - The dollar edged higher in early European trade Wednesday, but remains near recent lows ahead of a key U.S. inflation release.  At 2:55 AM ET (0755...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Sun San
Sun San Apr 22, 2021 7:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email