The pair started this morning at $1.1610 after a $1.1561 to $1.1680 range last night during the US hours, and was in the spotlight in early dealings ahead of tonight’s ECB meeting. Euro-dollar climbed in early dealings to $1.1630 mainly on short-covering but reversed direction after that. The market is anticipating the ECB meeting today to end with an announcement to expand its asset purchase program but there is growing risk of disappointment over the expected size of the plan. Euro-dollar’s retreat off the early peak saw it slide to a $1.1591 low before it then made another minor recovery to $1.1613. The late morning/early afternoon rise in euro-yen failed to give euro-dollar sufficient lift and the pair continued to hold just off the low, to last trade at $1.1594. Further short-covering may be seen ahead of the ECB announcement with stops noted above $1.1680, $1.1760 and $1.1900.
