The Euro gained against the US dollar today as investors pushed back hopes of an imminent rate hike from the US Federal Reserve and traders took profits ending the greenback’s 6 day winning streak.
At 8.11pm (GMT) the Euro was trading at $US1.1473 up from $US1.1370 in yesterday’s trade.
The recent run of the US dollar came on the back of comments from 2 Fed board members who noted that an interest rate hike was still on the table as soon as next month, going against Fed president Janet Yellen who noted that a rate rise was far from certain.
Most analysts now agree that the US central bank may only lift rates once with the timing of such a move coming towards the end of the year.
“The market had reached too far in pricing out any Fed rate hikes,” said Greg Anderson, global head of FX strategy at BMO Capital Markets.
“The new equilibrium for the moment is, if the Fed hikes this year at all, it’s just in December and it’s just once.” He added.
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