Euro Gains Ground ahead of ECB

Barbara Zigah

Analysts say that the ongoing Brexit discussions and the absence of any positive news from them are also likely to keep the Euro lifted against its UK rival.

ECBIn London trade on Thursday, the Euro gained ground against the greenback but currency strategists are wary of any potential move from the European Central Bank. The ECB is due to make an announcement shortly regarding their monetary policy strategy and though analysts polled don't foresee any immediate changes, what will be crucial is the commentary by the head of the ECB, Christine Lagarde. She will certainly make note of the Euro's steady rise to a 2-year high, despite lower CPI. While most economists expect a dovish stance from Lagarde, many question the ECB's ability to actually address the issue, given that their central bank's toolbox looks quite sparse.

As of 10:53 am in London, the EUR/USD was trading at $1.1836, up 0.26%; the pair has ranged from a low of $1.17971 to a peak of $1.18405. The EUR/GBP was also higher at 0.9092 Pence, up 0.1255% and off the session peak of 0.91040 Pence.

Advertisement

Euro's Continued Rise Likely

How the ECB will move to curtail the Euro's strength is at the heart of the matter. The combined response from Eurozone nations to the Coronavirus pandemic has helped to build significant confidence from investors and businesses alike. Analysts say that the ongoing Brexit discussions and the absence of any positive news from them are also likely to keep the Euro lifted against its UK rival. The Pound has been feeling significant pressure on the Brexit issue and has been struggling for traction. Currently, and largely given a weakened greenback, the GBP/USD is trading higher at $1.3023, up 0.2394%.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.