The US dollar was seen giving back the gains a day after the FOMC meeting. EURUSD managed to recover as the currency pair regained the 1.19 handle.
On the economic front, the Bank of Japan left interest rates and QE unchanged signaling that it could still maintain its easy monetary policy. This led to some weakening in the Japanese yen across the board. The ECB President Mario Draghi gave a speech yesterday but refrained from making any references to monetary policy or the euro’s exchange rate.
Looking ahead an important day for the British pound as the Prime Minister, Theresa May will be giving a speech on Brexit to the UK Parliament. Investors are expecting that the UK will be moving towards a softer Brexit. However, the risks are balanced, and the GBP could be seen trading volatile today. ECB President Mario Draghi is also expected to speak later in the day.
