Euro trading generally lower today ahead of ECB. But it’s clearly just paring some of this week’s gain as traders turn cautious. EUR remains the strongest one for the week and the month. And over the last four hours, it has indeed regained some ground, showing that the retreat is rather shallow.
There is only one important thing to note today, whether ECB will change forward guidance and drop easing bias. We believed that ECB won’t do anything today and leave the options for June meeting. There are just too many uncertainties out there, including US trade tariffs and Brexit negotiation. ECB will keep the open to extend the EUR 30b a month asset purchase program after September.
Here are some suggested readings on ECB:
