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Euro just off 312mth Low vs Dollar preECB

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LONDON Reuters The euro traded just off 312 month lows versus the dollar on Thursday before a potentially momentous meeting of the ECB, while growthfocused currencies such as the Australian dollar gained as a global risk selloff abated further.

The U.S. dollar index and the yen which rose earlier this week to the highest since earlyApril and endMay respectively, retreated as strong earnings lifted stock markets and bond yields, and induced investors to trickle out of the safehaven assets they had piled into.

They also bought back into cryptocurrencies, with bitcoin rising further above the 30,000 mark, especially after Tesla CEO Elon Musk said the company would most likely resume accepting bitcoin for payment.

No new measures are anticipated from the European Central Bank but following on from the inflation target tweak, odds have risen on policymakers promising to retain support for longer and even to add more bondbuying.

The euro traded at 1.1790 by 0800 GMT, just off the early April lows of 1.1752 touched on Wednesday. The ECBs dovish pivot at a time when many peers are mulling exiting pandemicera stimulus is expected to keep the single currency under pressure.

A lot of what happens today with the ECB hinges on just how much of an inflationaveraging central bank Lagarde and the press conference portray them as, said Stephen Gallo, European head of FX strategy at BMO Capital Markets.

The more they look willing to tolerate a significantly higher rate of…

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