European Majors Strengthen Awaiting ECB Statement

Forex News

The euro and British pound rise today, as investors are focused on Brexit developments and the European Central Bank's policy meeting. Meanwhile, Italy's budget crisis also remained in focus after the Italian government offered to lower its deficit target next year to 2.04% of GDP, below the 2.4% level that the European Commission had rejected as too high.

The euro gained 0.1% versus US dollar to trade 1.1385 level. The British pound added 0.3%, with the GBP/USD pair traded at 1.2671 level. The pound had bounced off a 20-month low of 1.2478 and gained 1.1% after Prime Minister Theresa May survived a no-confidence vote.

The European Central Bank will hold its monetary policy meeting today. ECB is widely expected to keep benchmark interest rate unchanged at 0.00%. It is also expected to announce about completion of its asset purchase program. The asset purchase program was launched in March 2015 to prevent sub-zero inflation from further hitting an economy still reeling from the Eurozone debt crisis.