In light of recent positive economic news for the Eurozone, including a report published yesterday which indicated there may be some respite in the currency bloc’s previous upward unemployment trend, investors will be anxious to see how today’s European Central Bank policy meeting pans out.
Some industry experts believe that ECB President Mario Draghi is feeling confident enough in the Eurozone’s progress to hold off on altering policy, and that the central bank chief will refrain from issuing any additional comments regarding last month’s vow to leave interest rates at record lows for the foreseeable future.
The Euro/Pound pairing is currently trading in the region of 0.8748
As one London-based economist observed: ‘People are a bit more optimistic about the second half. [The ECB is]keeping the door open to doing more, if and when required, but at the moment the baseline scenario is intact that we do get some kind of recovery later in the year.’
Similarly, industry expert Christoph Kind commented: ‘The recent data in the Euro area has been rather good. You could in principle say that the recession is over. The ECB could argue that the data are proof that the expansive monetary policy is bearing fruit, but it’s by no means the time to change their guidance.’
While the ECB policy statement will be of particular interest today, other Eurozone news to watch out for includes manufacturing PMI for the Eurozone and Germany.
In the aftermath of yesterday’s Federal Open Market Committee policy announcement the Euro is trading slightly lower against the US Dollar.
However, the common currency reached fresh highs against the British Pound ahead of today’s Bank of England policy statement.
Euro (EUR) Exchange Rates
As of 08:55
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3242 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8748 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4777 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6640 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3629 <
