The euro currency traded flat on Thursday ahead of next week’s key ECB monetary policy meeting. Moving forward, the German PPI will be in focus. Producer prices in Germany are forecast to decline by 0.1% on the month. This comes after recent inflation data showed a rebound albeit still far away from the ECB inflation target rate. The current account data is also due later this morning.
EURUSD Likely to Close Flat
The currency pair is expected to remain in a holding pattern ahead of next week’s ECB meeting. From a technical perspective, price action remains firmly entrenched within the 1.1250 – 1.1188 levels. A breakout from this range could see further short term gains or declines. But this could also be limited in scope. Unless there is a strong fundamental catalyst, it is unlikely to expect further strength in the currency pair.
