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Forex - Dollar mostly lower ahead of big day for central banks

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Investing.com - The U.S. dollar is trading mostly lower against its major rivals during Thursday's Asian session ahead of what promises to be an important day on the global central bank front.

In Asian trading Thursday, EUR/USD climbed 0.18% to 1.2992 after the euro slid to near its lowest levels in nearly three months against the greenback. Traders appear to be speculating the European Central, which is scheduled to make monetary policy comments later today, will revise its already lower economic growth outlook for the region downward.

That could open the door to additional easing, which would in turn pressure the common currency. It is widely expected the ECB will keep its benchmark interest rate at 0.75%.

GBP/USD fell 0.14% to 1.4998. Sterling fell to 1.4967 yesterday against the dollar, the lowest level in nearly three years. The Bank of England is also scheduled to make a monetary policy announcement later today and speculation has increased that BoE could restart quantitative easing after halting its bond-buying activities in November.

Sterling and the yen are the two worst-performing developed market currencies in the world this year. Speaking of the yen, USD/JPY is lower by 0.12% at 93.97 after earlier touching 94.11. On Wednesday, Credit Suisse said USD/JPY could rise to 99.86, the pair's highest level in nearly four years. The Bank of Japan concludes a two-day meeting later today. This week alone, the yen has fallen 1.4%

Elsewhere, USD/CHF fell 0.04% to 0.9483 while USD/CAD fell 0.01% to 1.0319.

AUD/USD rose 0.08% to 1.0244 even after a report showed the nation's trade deficit widened more than economists expected. The country's trade deficit widened to AUD1.06 billion in January from AUD688 million in December. Economists expected a January deficit of AUD500 million.

NZD/USD fell 0.08% to 0.8278 while the U.S. Dollar Index dropped 0.01% to 82.55.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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