The Fed's current target range for the rate is between 0.25% and 0.5% and most policymakers expect to raise the range by a quarter point before the end of 2016. But Lacker argued economic history suggests the rate should be about 1.5 percentage point higher than its current level given the current rates of joblessness and .
The common currency had slid on Tuesday to a low 1.1138 against the dollar before climbing back to a peak 1.1239. It climbed along with a rise in euro zone debt yields in response to a Bloomberg report of a ECB plan to taper its asset-purchase programme. An ECB media officer tweeted later on Tuesday, however, that the central bank's decision-making body has not discussed reducing the pace of its monthly bond buying.
Draghi said last month the ECB would look at ways to ensure the bond-buying programme carries on smoothly, amid market fears of a scarcity of assets to buy in countries such as Germany. An announcement on that is expected in December, when the ECB publishes its new staff forecasts.
For immediate cues the market will look to comments due later in the day from ECB Governing Council member Ewald Nowotny and Minneapolis Fed President Neel Kashkari. Upcoming data on Wednesday include the U.S. ADP employment report and ISM index of non-manufacturing activity. We keep EUR/USD long position opened at 1.1180.
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