7:45am (NY Time) EU ECB Rate Decision  Forecast 1.00%  Previous 1.00%
ACTION: EUR/USD       N/A

ECB (European Central Bank) is expected to leave its official interest rate at 1.00% or unchanged once again this month.  The majority of analysts surveyed seems to agree to this sentiment as  ECB is likely to keep rates unchaged at the current level until 2011 as the Euro Zone is still plagued with the imbalanced economic recovery of its member countries, especially Greece… As a matter of fact, should Greece default from unable to fulfill its debt obligations, the entire Euro Zone will suffer greatly and EUR could depreciate even below parity against the USD.

With the current market showing a strong bias in selling EURO, I fully expect this sentiment to continue.  Should EUR/USD rise after today’s rate decision or during the later press conference by Trichet, I’ll just be looking to enter a SELL trade at a better level…

Of ocurse, as these rate decisions are concerned, generally ECB is not in the habit of surprising the market as the result of a surprise on the world’s most traded currency pair (EUR/USD) would upset economy, therefore I expected everything to be released as expected… The real mover will be the press conference hosted at 8:30am (in 45 minutes) by ECB Trichet, which may shed some new light over ECB’s monetary policy.

Of course, I suggest that we stick around during the release just in case ECB decides to surprise the market, but most likely we won’t see much of a market volatility…

Related posts:

1. ECB Minimum Bid Rate Decision (Interest rate decision) 12/03/09
2. ECB Minimum Bid Rate Decision 11/05/09
3. ECB Minimum Bid Rate Decision 10/08/09
4. ECB Minimum Bid Rate Decision 09/03/09
5. ECB Trichet Press Conference 09/03/09
6. RBA Cash Rate Decision 02/01/10
7. RBA Cash Rate Decision 11/30/09 (Interest Rate Decision)
8. RBA Interest Rate Decision 09/01/09
9. RBA Cash Rate Decision 10/05/09
10. ECB Trichet Press Conference 12/03/09