Reportedly, the ECB is analyzing the possibility of the change of the current inflation target of "below but close to 2%". It weakened the EUR
Aussie and Kiwi soar vs. US dollar ahead of Fed decision
On Wednesday, the Australian and New Zealand dollars ascended versus their American rival because market sentiment on the US currency was still uncertain ahead of the Fed’s highly-anticipated policy decision a bit later in the day.
The currency pair AUD/USD gained 0.17% reaching 0.7571.
The Fed is generally believed to lift its interest rates at the conclusion of its two-day policy gathering later on Wednesday. However, worries over tepid inflation could change the outlook for next year.
The US currency also dived amid fresh American political worries, after a Democrat nominee managed to grasp a US Senate seat in Alabama, thus diminishing the Republican camp's Senate majority.
The reduced Senate majority could potentially prevent Donald Trump from implementing tax reform plans as well as other economic policies.
The currency pair NZD/USD gained 0.10% hitting 0.6941, which is the highest value since November 9.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
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On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…