UPDATE: The Euro to US Dollar (EUR/USD) exchange rate drifted higher on Wednesday, with the pairing reaching around $1.1274 amidst rising speculation that the Federal Reserve may be forced to cut rates this year. However the Euro gains were tempered, following the announcement that the European Commission may take disciplinary action against Italy over its refusal to meet EU budget targets. There is a chance the US Dollar could still move lower again however as USD investors brace for the release of the ISM non-manufacturing PMI later in the afternoon.
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