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FxWirePro: ECB monetary policy preview
Today European Central Bank (ECB) is to provide further guidance in policy meet. Result to be announced at 11:45 GMT, followed by a press conference at 12:30 GMT. The meeting is to be held at the ECB headquarter in Frankfurt.
Current policy measures–
Expectation today –
What to watch out for –
The euro is consolidating in a range of around 600 pips (1.12-1.18) since May 2018. The focus is clearly on the European Central Bank (ECB), as the market is looking for clear guidance.
However, faced with numerous uncertainties such as trade war, Italy vs. Brussels standoff, weakness in the economy, President Draghi is likely to continue talking dovish and show readiness to ease policy rates if necessary.
The euro is likely to move lower as a stronger euro is in the least interest of German exporters. We at FxWirePro remain long-term short in euro since 1.21 against the USD and expect the exchange rate to move to as low as 1.095 area.
The euro is currently trading at 1.127 against the USD.