Euro edges up vs. dollar

Euro titled higher for the first time in four sessions against the dollar, following earlier data from the euro zone, and amid a lack thereof from the US, the world's largest economy, and ahead of the Federal Open Market Committee's meeting today and tomorrow in Washington. 

As of 04:18 GMT, EUR/USD rose 0.09% to 1.1205 from the opening of 1.1198, with an intraday high at 1.1232, and a low at 1.1192. 

Earlier data from Italy, the euro zone's third largest economy, showed an unexpected drop in industrial production in May, while European Central Bank member Benoît Cœuré said earlier that he believes the markets understood well the change in the ECB's tone, while current inflation developments remain positive despite the outlook downgrade, noting that the ECB will discuss ending the monetary easing in the appropriate time. 

Cœuré also said the ECB is doing all it can to maintain the credibility of the euro zone economic forecasts, while adding the British economy is not a main source of risk for the euro zone economies, as the French elections results underpin the march for structural reforms, while German Chancellor Angela Merkel said the EU is ready to start the Brexit negotiations with Britain, asserting there's no obstacles to exit the Union. 

Cœuré's remarks came after last week; ECB policymakers opted to hold the Minimum Bid Rate unchanged at zero, while also holding the deposit rate at the record negative 0.40%, before president Mario Draghi asserted the bank's resolve to carry on its monetary easing program until the end of 2017, with the possibility of extending it beyond that if needed. 

 Draghi said in the post-meeting conference that recent euro zone data, including a surge in the PMI to 2011 highs, while the unemployment rate fell to 2009 lows, showed that economic growth is gaining momentum, which announcing an upgrade to growth forecasts and a downgrade for inflation. 

Draghi added that policymakers didn't discuss the possibility of normalizing the monetary policy, while two members delved into the monetary easing mechanism and its relation with current inflation, pointing that financial and monetary unity isn't perfect yet, while asserting that the 60 billion euro a month asset purchase program is effective and flexible enough and takes into consideration the stabilization of prices in the region. 

Otherwise, markets await inflation data for May later this week, which might influence Fed policymaker's positions at the ongoing June meeting. 

The Fed is expected to tighten its policy and raise interest rates by 25 basis points to between 1.00% and 1.25%, while policymakers are expected to unveil their three year forecasts for inflation, unemployment, growth, and interest rates for the next three years.