Despite an address from European Central Bank (ECB) President Mario Draghi in Brussels yesterday, the euro traded within a relatively narrow range against both sterling and the US dollar. Draghi’s words had the potential to cause greater rate movements as investors would have been paying close attention ahead of the next interest rate decision which takes place on Thursday. However, his words were too vague to have a great impact on rates.
According to a Bloomberg survey, most economists now predict that the ECB will not change interest rates as recent data sets have been marginally better than expected. As we near Thursday’s meeting, exchange rate movements may become larger as a result of trader speculation. Additionally, this morning sees the release of Spanish unemployment figures. As a key economic indicator, employment figures often have the potential to affect the performance of a currency.
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