The euro traded up slightly during the opening of the Asian session today, amid the closing of the US market in conjunction with ‘Thanksgiving Day’.
The currency had previously weakened following the issuance of a report of the minutes of the European Central Bank (ECB) meeting and concerns over the spread of the Covid-19 epidemic prompted Germany to impose stricter restrictions that would inevitably affect growth in Europe's largest economy.
ECB chief economist Philip Lane expressed his concern that if the central bank allowed inflation to stay low for longer, it would be detrimental to consumption and investment as well as reducing the potential for growth.
The ECB policy meeting, which will take place on December 10, is widely expected to enhance and extend its emergency asset purchase program (PEPP) as well as offer more long-term financing to banks.
Meanwhile, the US dollar continued to weaken ahead of the weekend trading despite recording a slight increase in the previous session.
The safe-haven dollar is now on track for weekly losses after being pushed by sentiment against rising risk currencies supported by the positive development of the Covid-19 vaccine and lack of uncertainty in U.S. politics.
