“There has been very little backpedaling on the long euro storyline as dealers continue to place much emphasis on Draghi declining the opportunity to talk down the currency post ECB minutes,” said Stephen Innes, head of trading for APAC at OANDA, in a note.
The euro traded at $1.1669 on Monday mid-morning Asia time. Elsewhere, the Japanese yen traded at 110.93 to the dollar, strengthening from an earlier low of 111.19, and the Australian dollarfetched $0.7914.
Ahead of the Fed’s meeting, most analysts don’t expect the U.S. central bank to move on interest rates, but they said the market will look for clues on when the Fed will commence the process of balance sheet shrinkage.
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