The euro headed for a sixth day of losses for the first time in five months as traders ramped up bets on the extent of monetary easing from the European Central Bank next year.
EUR/USD drops as much as 0.2% to 1.0775 before paring losses; money markets now see 150 basis points of loosening in 2024.
Governing Council member Martins Kazaks said the ECB probably won't need to reduce borrowing costs in the first six months of next year; he added that "if the outlook changes, and the balance of risks for price stability shifts, also our decisions on rates might change".
Bloomberg Dollar Spot Index declines 0.1% after gaining 0.7% in the past two days; Treasury 10-year yield little changed on the day at 4.16%.
USD/JPY erases a 0.2% decline to trade at 147.14; Bank of Japan Deputy Governor Ryozo Himino signaled that the central bank is inching closer to ending its negative interest rate regime by laying out a hypothesis for what might happen if indeed rates go positive.
AUD/USD up 0.5% to 0.6582, after jumping as much as 0.7% earlier.
Source : Bloomberg
