The euro continues to rise, but the course can change dramatically. ECB President Christine Lagarde may change the euro's trajectory after the ECB meeting because the euro growth affects the outlook for inflation and economic growth.
The European currency was trading at $1.1821. It rose by 0.3% from the previous session.
The pound sterling was slightly up to $1.2993. However, the pound may lose its position, as the UK and the EU still have not reached a trade agreement.
At the same time, GBP/EUR fell to 90.98, reaching a six-week low.
The US dollar is stable against the safe Swiss franc and trades at 0.9116. USD/JPY is trading at 106.11 yen.
The euro is rising amid news that ECB leaders are increasingly confident in the bloc's economic prospects. However, not everyone cheers the fact that the EUR/USD rate went up by 6% from the June low.
The global stocks are also the main issue for traders, as the rebound in US tech stocks after a sharp sell-off pushed Asian stocks higher, signaling an improved risk appetite.
The ICE US dollar index, which measures the US dollar against a basket of six major currencies, remained stable at 93.172.
The Australian dollar lost value amid worsening diplomatic relations with China. Moreover, investors are worried about a new coronavirus outbreak which was registered in the state of Victoria.
The New Zealand dollar fell slightly to $0.6681.
The meeting of the European Central Bank on monetary policy may affect the European stock indices as well. Unlike the euro, they decreased in value.
Germany's DAX fell by 0.1%, France's CAC 40 lost 0.3%, while the UK's FTSE dropped by 0.6%.
At the ECB meeting, leaders will make new economic forecasts. But the main question remains whether the bank will be able to depreciate the euro, given how important exports are for the region.
Saga suffered heavy losses from its cruise and other tourism operations. To recover, the company announced a £150 million capital increase. As a result, Saga's shares fell by 5.5%.
Also, WM Morrison Supermarkets reported losses from the coronavirus pandemic as well. However, despite the growth in sales in the first half of the fiscal year, its shares crashed by 4.5%.
Nevertheless, the NASDAQ index showed growth. During the day, it added 2.7%. This is the fastest increase in more than four months. The Dow Jones index rose by 1.6%, and the S&P 500 increased by 2%.
At the same time, oil prices are falling, as the growth of US oil inventories has exceeded all expectations. Moreover, oil demand remains low.
Futures for WTI crude fell by 1.4% to settle at $37.53 per barrel, while the Brent crude decreased by 1.1% to trade at $40.34.
Gold also fell in price by 0.1% to $1,952.35 per ounce.