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Sino-U.S. trade thaw sparks risk rally, euro awaits ECB

“The other major driver for currency markets on Thursday is a meeting of the European Central Bank, where expectations of easing have weakened the euro” writes Midwest Communications Inc for The Australian dollar The yen fell almost 0.2% to 108.00 per dollar, its weakest since Aug. 1.The thaw in hostilities supported broader risk appetite in global financial markets with the Chinese yuan jumping 0.2% to 7.0861 in offshore trade, its highest in three weeks.”Market reaction will likely hinge on the confirmation of a rate cut,” said David de Garis, a director of economics and markets at National Australia Bank in London.The ECB is almost certain to cut rates, promise to keep rates low for longer and provide banks relief from the side effects of negative rates.

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