The Euro continues to be steady ahead of the latest policy decision from the European Central Bank. Markets are waiting to hear from the ECB chief, Mario Draghi, to get a hint as to whether or not the current loose policy is seen as appropriate and likely to remain unchanged in the near term. If Draghi suggests that more easing could be possible could put more pressure on the common currency. Provided the ECB takes a wait-and-see approach the Euro could edge higher, and analysts say it’s likely to approach last October’s level at the $1.15.
As reported at 10:53 am (BST) in London, the EUR/USD was trading relatively flat at $1.1301, a gain of 0.01%; the pair has ranged from a session low of $1.1283 to a peak at $1.1315. The EUR/JPY is also higher at 124.0235 Yen, a slight gain of 0.02%.
More Dovishness Ahead?
Currency strategists point out that with inflation expectations easing a bit, they might get even more dovishness from Draghi. Analysts say that Draghi is likely to dismiss the concerns of German officials who argued that the ECB’s negative rates were hurting some savers in Germany. If Draghi seems even more outspoken than he has in the past, the EUR/USD could see even more easing ahead. The ECB’s policy decision today is only the first of the “majors” with the US Federal Reserve Bank and the Bank of Japan holding their reviews on April 27th and April 28th, respectively.