Gingerly trading ahead of ECB meeting

In early trading today the US dollar and the Japanese yen recorded a slight rise against other major currencies following the drop in oil prices and the  Asian stock markets.

The subsequent stabilization of stock markets in Europe turned back a part of yesterday's risk appetite in currency markets, parrying the appreciation of both major currencies.

The euro consolidated between 1.1350 and 1.1388 US dollars, as investors' attention is focused on tomorrow's regular meeting of ECB. Although it is not expected the central bank to make changes in its stimulating monetary and interest rate policy, Mario Draghi’s press conference is widely awaited with interest, because he will most likely confirm that the central bank stands ready to take further measures if necessary.

The decline in Asian markets and negative start on European stock markets initially led to a fall of the US dollar to 108.77 yen and of the euro to 123.54 yen before the subsequent stabilization of the capital markets in Europe returned USD and EUR to respectively 109,37 and 124,33 levels.