Euro Gets a Little Boost Ahead of ECB Annoucement

Euro is getting a little bit of a boost today, heading higher head of the ECB announcement that is expected shortly. The 18-nation currency is heading a little higher, in spite of recent disappointing factory data, and the possibility that the ECB will have to add more stimulus.

Even though many expect that the ECB will announce more economic stimulus measures, weakening the euro in the long run, for now, many think that the ECB won’t do anything dramatic. Many analysts expect the ECB to remain in wait and see mode for at least another month. However, Forex traders and others will be watching for ECB President Mario Draghi to signal intentions for the future.

For now, the euro is heading a little bit higher as the US dollar corrects from yesterday’s gains, and as Forex traders consolidate their euro positions before preparing for what happens after Draghi makes the ECB policy announcement. Even with the announcement, though, the real interest for Forex traders is likely to come tomorrow with the US nonfarm payrolls report.

At 11:27 GMT EUR/USD is higher at 1.2527, up from the open at 1.2483. EUR/GBP is also higher, moving up to 0.7857 from the open at 0.7813. EUR/JPY is higher as well, gaining to 143.5280 from the open at 143.2510.

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