7:45am (NY Time) EU ECB Rate Decision Forecast 1.00% Previous 1.00%
ACTION: EUR/USD N/A
ECB (European Central Bank) is likely to once again leave its minimum bid rate at 1.00% or unchanged this month. The majority of analysts agree to this sentiment as according to ECB, it is will keep rates unchaged until 2011.
Euro Zone is still plagued with the imbalanced economic recovery of its member countries, especially Greece, Spain, Portugal, and Italy… As a matter of fact, even with the Austerity Measures issued by Greece yesterday, the risk of a sovereign default is still possible.
With the current market still showing a weaker EUR against the USD as the current market unable to stay above the 1.3700 at the time of writing this analysis, we could see another renewed sense of EUR sell-offs later on today.
However, as ECB rate decisions are concerned, generally ECB is not in the habit of surprising the market because any 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…
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