The euro currency continued to rise higher during the European session amid the weakness of the greenback dollar which continued to trade around its two-year low.
Market expectations for the reported Covid-19 vaccine will be approved soon in December and expectations that the Federal Reserve (Fed) will implement more stimulus measures have prompted investors to reduce US dollar demand.
As discussions on new fiscal stimulus from the US government have yet to be made, investors now expect the Fed to take steps to increase bond purchases at the December policy meeting.
Fed Chairman Jerome Powell, who testified before Congress on Tuesday and Wednesday, will be scrutinized by investors for guidance from the central bank, as well as the release of employment data on Friday.
Meanwhile, the pound showed a decline at the start of the European session under pressure hovering over Brexit trade negotiations, prompting investors to be cautious in their positions.
At the same time, however, the currency was also supported by the hope that an agreement could be reached. UK Foreign Secretary Dominic Raab expressed his confidence that both parties could reach an agreement.
