Closed in NY at $1.2600 after settling back from a recovery high of $1.2625, seen as rate reacted to source reports concerning today’s ECB announcement on its much anticipated bond buying programme. Trade through Asia was described as subdued with today’s ECB meeting in view. Trade in Aussie provided the main directional impetus, the initial downside reaction to the release of Australian jobs data saw euro-dollar track the Aussie move, trading down to $1.2593 before a rebound in the Aussie bounced rate back up to $1.2621. Rate then drifted lower, settling around $1.2600 ahead of the European open. Initial focus will be at the 1145GMT rate decision with some seeing room for a 25bp cut to 0.50% (though this is not supported by short term futures rate contracts). Following on from Wednesday’s source report the market will await ECB Draghi’s press conference at 1230GMT with market expectations for an unlimited, unstabilized bond buying plan. Reaction will be on the extent of detail given. Offers $1.2620, stops $1.2630-50. Bids $1.2480.
EasyForexNews Research Team