Euro is on defensive before ECB

On Thursday, the euro hovered over a three-month minimum ahead of a European Central Bank gathering, while the Mexican peso edged up to a six-week peak after the conclusion of the final American presidential debate before the November election.

The common currency eased 0.1%, reaching $1.0969, not far from Wednesday's three-month minimum of $1.0955.

The key focus for market participants is whether or not ECB President Mario Draghi will provide any indications that the major EU financial institution is braced for tapering its bond purchase program. The ECB might delay until December any changes to its asset purchase as some sources familiar with the matter revealed last week.

If Mario Draghi gives greater emphasis to the necessity for more stimulus, further losses are probable. On the contrary, if he’s optimistic enough, then EUR/USD could rebound to 1.11. That’s what many financial analysts think.  

Key currencies demonstrated limited reaction to the third as well as final debate in the American election campaign between Clinton and Trump, while the Mexican peso soared. 

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