The common currency of the European Union climbed during the Wednesday trade session against the world's reserve currency and the Japanese yen as policy makers with the European Central Bank prepared to meet later this week, Bloomberg reports.
The body will not change borrowing costs from 0.5 percent, according to 67 of 70 economists polled by Bloomberg. But Bank of America Corp., the Royal Bank of Scotland Group Plc and UBS AG said the central bank of Europe will reduce expenses when it meets on Thursday. The U.S. Department of Labor is scheduled to release job market data, which also will impact foreign exchange markets.
"For the next couple of days we have such a heavy events schedule, with the ECB tomorrow and then U.S. payrolls on Friday, that I think we are looking at the market battening down the hatches," head of G10 FX strategy Ned Rumpeltin with Standard Chartered told Reuters on Wednesday.
The euro pushed ahead roughly 0.2 percent against both the U.S. dollar and the Japanese yen.
The 17-nation monetary unit also climbed amid speculation about the U.S. Federal Reserve's likelihood of extending economy-spurring monetary stimulus measures, according to Reuters.
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