Euro Prepares for Upcoming ECB Meeting

As the world awaits the ECB's announcement on Thursday, many are preparing for the worst and expecting the European Central Bank to disappoint. Discussions included in the meeting are interest rate cuts and long term loans for banks. ECB president, Mario Draghi is promising to do whatever he can to save the Euro. The Euro rose 0.3% against the 96.12 Japanese Yen and the Greenback had a two month low against the Yen. There is word that Italy wants their sovereign bonds to be purchased along with aid which may result in stop-loss Euro buying. Because of this, after the ECB announcement tomorrow, the Euro may struggle to rise over $1.2360. The Euro moved 2.9% against the US Dollar and had it's lowest level since June 2010 at $1.2043

Over in the Asian markets, Asian stocks have fallen and investors are waiting for the ECB meeting to decide what to do next. The MCSI Asia Pacific Index fell 8% in the middle of the concern that the Euro sovereign debt crisis will continue to worsen. The AUD/USD traded at 0.4% from a four month high as the Aussie awaits the Federal Reserve meeting later today.