The EUR/USD has climbed about 300 pips in the past 3 weeks. It’s having a hard time staying above 1.310, but if it breaks, monthly highs are on the way.
The ECB (European Central Bank) is holding a press conference Thursday. Starting at 8:30 am EST(12:30 GMT), announcements and remarks made by ECB President Mario Draghi and others could add to the Euro strength.
Euro Interest Rate Decision
The ECB held interest rates at their record low 0.5% earlier in the day.
Mario Draghi said this week that he still sees “a very gradual recovery”, starting later in 2013, according to Reuters. Draghi’s expectation eases pressure on the ECB to act right now (though they have promised to do so again if necessary). If this rate cut doesn’t bring about positive results in the Euro Zone, the ECB may feel like they are backed in a corner. Lowering their interest rates further would likely bring them to a rate of 0.25% and from there, there is not much else they can do as far as interest rates are concerned.
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