The U.S. dollar was steady Thursday while the Euro gained

The dollar index remained steady at 93.172 against a basket of six major currencies on Thursday. The U.S. currency traded against the Swiss franc at 0.9116. It changed insignificantly to 106.11 versus the Japanese yen as well.

Meanwhile, the Australian dollar plummeted down to $0.7268. Investors were concerned about Australia’s worsening diplomatic ties with China over the treatment of the two countries’ journalists. In addition, they were nervously observing an outbreak of Covid-19 infections in the state of Victoria. The New Zealand dollar lowered a little to $0.6681.

On Thursday, the Euro edged up slightly. Traders were looking forward to the European Central Bank meeting. Analysts expected the ECB to keep policy steady. Nonetheless, investors seem inclined to closely monitor President Christine Lagarde’s comments on how the Euro’s surge to a two-year high this month affects the outlook for economic growth and inflation.

The ECB is this week’s biggest event, and there is a lot at stake – stated Masaru Ishibashi, the joint general manager of trading at Sumitomo Mitsui Banking Corp. The Central Bank downplayed inflation recently. But Ishibashi wants to see how Lagarde will approach the present situation in her press conference.

The ECB may try to out-dove the Fed if the euro appreciation goes too far. Whether that will be done via shifting to average inflation targeting or other means is hard to say – stated Aidan Yao, the senior emerging Asia economist at AXA Investment Managers in Hong Kong.

How did the Euro and the Sterling trade on Thursday?

The Euro gained 0.3%, and it traded at $1.1821. Meanwhile, the British Pound steadied above a six-week low. It last stood at $1.2993, after recovering a little from a dip to a six-week low of $1.2839 on Wednesday. However, the Sterling tumbled down to 90.98 pence per Euro, approaching a six-week low.

According to analysts, the British currency may lose more due to growing worries that Britain and the European Union won’t reach an agreement on the trade deal.