Euro has been very resilient in the global market rout at the beginning of the year. The Pair is supported just below $1.0900 levels and trading at $1.0890 levels. It made intraday high at 1.0895 and low at $1.0867 levels.
Common currency is still being supported by ECB easing back in December that failed to meet market expectations. Subsequent rhetorics from ECB officials suggested that the central bank will adopt a wait and see stance to see how the stimulus feeds through to the economy.
The majority of economists and market participants now think the European Central Bank (ECB) is set to prolong or/and extend its asset purchasing in tandem with another deposit rate cut, a move seen at the beginning of December last year.
Hence, there isn't much expectation on today's ECB rate decision and it will keep monetary policies unchanged. Nonetheless, the post meeting press conference will still be closely watched for some topics.
The language of the ECB is likely to continue over the weekend, with both ECB President Mario Draghi and ECB Executive Board member Benoit Coeure scheduled to participate in a discussion at the World Economic Forum in Davos.
