Another quiet session today in Asia as the pair market waited for tonight’s ECB meeting. The ECB is expected to keep a steady hand on policy as it faces increasingly difficult choices and the latest inflation data eases pressure for immediate action, according to MNI report out last night. The key focus, however, will be on the ECB’s staff forecasts for growth and inflation. Ahead of that euro-dollar had a lackluster start, opening at $1.3586 and then staying mostly on the sidelines through much of the morning. Reports of a Moody’s upgrade to Spain’s BAA3 rating also failed to really inspire the market with euro-dollar only briefly managing a high of $1.3603 before easing again. Euro-dollar was last traded at $1.3598, after a narrow $1.3579 to $1.3603 range, with bids near $1.3545 and stronger demand at $1.3525/15 providing the lift. Topside, some dealers are eyeing a meaningful break of $1.3600 before taking aim at urmored stops at $1.3620 and then at $1.3635/45.
