Monday, 4 Apr 2011

EUR Maintains Gains Ahead of ECB Meeting

The euro remained close to a 5-month high against the US dollar throughout the morning session today, as investors eagerly await what comes out of the ECB meeting scheduled to take place on Thursday. Analysts are confident that the ECB will raise euro-zone interest rates, the first time such a move will have taken place in nearly three years.

Currently the EUR/USD is trading at the 1.4230 level, up over 40 pips since this morning. Against the British pound, the dollar was only able to fair slightly better. The GBP/USD is up close to 25 pips since this morning and is currently trading at 1.6142.

Turning to the rest of the day, a speech from Fed Chairman Bernanke is likely to inject some volatilty into USD pairs. While the dollar is unlikely to recoup its recent losses against the euro in the short term, a positive speech from Bernanke may help the currency against its other rivals.