Dollar down as US yields plunge

Later in the day, the European Central Bank decides about monetary policy. The primary interest rate will stay unchanged at 0.0%. However, the following statement is expected to be slightly hawkish, considering the soaring inflation in the eurozone. The EURUSD pair was seen at around 1.16, heading into the decision. 

"We think ECB President Christine Lagarde will use all her diplomatic skills to moderate the diverging views of hawks and doves within the Governing Council on Thursday," ING analysts said in a note.

Traders will also pay attention to the US GDP data for the third quarter. The annual change is forecast to decline notably to 2.7%, down from 6.7% previously. The GDP price index will likely decrease to 5.4%. Additionally, the usual Thursday's jobless claims are due. 

US tech stocks advanced yesterday, but other indices and sectors declined, posting a notable divergence between growth and value again. So far today, US equity futures are flat to somewhat higher, while EU bourses are rising during the Frankfurt session.

US yields declined sharply yesterday, pushing the real yields sharply lower, boosting precious metals. As a result, gold managed to jump above 1,800 USD again, while silver defended the important 24 USD threshold.