EURUSD trades close around 1.0900 ahead of ECB policy statement.
EURUSD is trading around the 1.0890s on Thursday, ahead of the European Central Bank’s (ECB) policy announcement at 13:15 GMT.Even while favorable Eurozone data contrasts with US outcomes. The short term rise remains stubbornly upward.
The EURUSD pair surged to 1.0900 on Wednesday after better than expected German trade. And Eurozone retail sales data bolstered the Single Currency. Now, traders look to be in wait and see mode prior to hearing the findings of the ECB’s panel.
The European Central Bank will deliver its policy decision and projections on Thursday.
The euro could decline on talk of conditions for a decrease.
It is quite improbable that the gentlemen of Frankfurt will opt to lower the ECB’s primary refinancing operations rate from 4.5% during the meeting. Current market expectations are for the first interest rate drop to occur in June.
According to ING bank analysts, the bank would most likely define the economic conditions. That would lead to a cut. Such chatter will most likely have a modest negative influence on the EURUSD. Although it is unlikely to fall below 1.0800.
“President Lagarde may begin laying out the groundwork for relaxing policy. This may be interpreted as mildly dovish. Implying a softer EUR and re flattening of the money market. It could weigh on the USD this week, giving EURUSD an additional lift.
Also on Friday, at 10:00 GMT, the final estimate of Eurozone GDP statistics will be released. With no change in the fourth-quarter sclerotic growth forecast. If the revision falls into negative territory, the case for a rate cut sooner becomes more persuasive, impacting on EURUSD. It may weigh on the USD this week, giving the EURUSD another lift.
Also on Friday, the final estimate of Eurozone GDP statistics will be released at 10:00 GMT, with no change in the fourth-quarter sclerotic growth forecast. If the revision falls into negative territory, the case for a rate drop sooner becomes much more compelling, dragging on EURUSD.
