Ahead of the European Central Bank Governing Council meeting, EUR/USD is expected to move within a narrow range centered around the lower half of $1.16. Market attention is likely to focus on the outcome of the meeting.
In the London foreign exchange market, EUR/USD is expected to trade narrowly around the lower half of $1.16 ahead of the ECB Governing Council meeting. Investors are sensitive to clues on interest-rate policy and draft guidance from the meeting, and the prevailing view is that the short-term trading range will remain limited.
While some expect the euro’s direction to change depending on the content of the ECB Governing Council’s announcement and the wording of its statement, the factors pointing to a significant price move are considered limited at present. Market participants remain focused on awaiting the outcome of the key event.
EUR/USD is therefore expected to remain primarily within its current range until the ECB Governing Council reaches its conclusion. Attention will be focused on the ECB’s policy decision and how it affects the euro’s movement against the dollar.