Euro rises ahead of European Central Bank decision

Live – The euro edged higher on Thursday ahead of the European Central Bank’s interest rate decision. Traders believe a cut in European interest rates is almost certain.

The dollar fell on renewed bets that the US Federal Reserve will cut interest rates this year.

The Canadian dollar edged higher, paring some of the previous session’s losses, as the Bank of Canada was the first of a group of seven to cut its key interest rate as expected. In recent trades, it touched 1.3687 per dollar.

The euro rose 0.07% to $1.0876 as traders looked to the European Central Bank meeting later for indicators on the path of interest rates..

Although policymakers expressed their willingness to lower borrowing costs this month, they remained cautious about how quickly the subsequent cuts would come..

The dollar has been in a widespread decline, one of the reasons for which is the weakness of the labor market in the United States, which has increased the justification for lowering interest rates this year..

Data showed yesterday, Wednesday, that the US services sector returned to growth in May after a short-term contraction in the previous month, but survey data pointed to a continued contraction in employment..

Against the US currency, the New Zealand dollar touched a three-month high of $0.6201, while the British pound rose 0.09% to $1.2800. The Australian dollar rose 0.25% to $0.6664.

The dollar index, which measures the greenback against a basket of major currencies, was down 0.14% at 104.10 points..

The yen recovered some of its losses from the previous session and rose 0.4% to 155.50 against the dollar.

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