Euros Gain as Investors Eye ECB Report, Virus Pulls

Euros regain traction after sliding to a week-low of $1.1718 in an overnight trading session.

EUR/USD pair gained 0.1%, settling at $1.1746 as investors eye European Central Bank’s report on what is anticipated to be an additional stimulus measure.

The market hopes that the ECB will inject additional cushion into the bleeding economy. This is especially now that most of the continents’ leading economies battle the second wave of infections.

The bloc’s monetary policy easing has strengthened in recent months following economic growth recorded in some member states.

However, the optimism is turning sour with the sudden turn of events to the negative.

European governments, lead by frontrunners France and Germany, consider imposing new rounds of national lockdowns with the prospect to stop the spread of the virus.

According to analysts, the market expects the ECB to resort to further easing come December to provide temporary comfort to the injury.

Along with gloomy reports in its counterpart, the United States is not doing any better. 

The world’s most powerful economy continues to weather tumbling economic indicators, preventing the dollar from recording a further rally.

Investors are currently keeping their portfolios in the status quo as the market anticipates US GDP figures’ release for the third quarter, with the weekly jobless claims after.

Nevertheless, analysts are expecting a 31% annualized increase in GDP. The surge could have supported the dollar in past events. 

However, political and economic instability in the country ahead of the elections also weighs on bullish prospects.

How is USD/JPY Faring against the Dollar

In the latest foreign exchange data, the USD index settled at 93.043. 

The world’s reserve currency has so far gained 0.5% during the week. Supported by growing risk sentiment in the market, propelled by rising coronavirus cases globally.

Meanwhile, in Asia, the USD/JPY pair remained mainly unchanged at 104.28. The dollar tumbled to its lowest in more than a month against the yen in the previous session.

Further gains for the Asian safe-haven is immediately put to an end following the Bank of Japan’s decision to cut the growth forecast for the year ending March.

The monetary regulator eyes for a 5.5% contraction from previously reported 4.7% due to the trudging recovery in the country’s services sector.

Its Chinese neighbor, renminbi, edged down by 0.15% to settle at 6.7180. 

The Chinese Communist Party is due to release its economic plan for the next five years.