Euro failed to continue its advance against the dollar and gave up some of its gains from Tuesday during the Asian session today. But the pair still remained within recent ranges due to fixing and positioning ahead of the ECB policy meeting as well as closed U.S. markets for the Independence Day holiday today. EURUSD opened in Asia at 1.2606 and slid to 1.2580.
The ECB is expected to cut interest rates by at least 25 basis points to a record low of 0.50 percent. However, it is unclear how markets will react as the rate cut could be seen as either positive or negative for the single currency given current conditions in the euro zone.
GBPUSD traded a bit heavy, edging down from 1.5686 to 1.5665. Sterling is subject to event risk on Thursday when the Bank of England will be announcing its interest rate decision. Speculation is for more QE.
Yen pairs mostly remained within recent ranges. USDJPY briefly dipped to 79.58 before recovering above 79.72. EURJPY slid 0.4 percent to 100.21 tracking a drop in EURUSD.
Aussie was the best performer due to very good moves up in commodities. AUDUSD opened in Asia at 1.0279 and rallied some more to hit a new two-month high of 1.0317 on better than expected Australian retail sales data. May sales were up 0.5 percent from a previous 0.1 percent.