Some relatively positive news out of Ukraine yesterday was enough to stabilise the euro, after an unsettled start to the week on Monday and Tuesday. Saying this, general sentiment towards the euro has been poor, with some underwhelming data releases leaving the currency vulnerable to further slides despite yesterday’s levelling.
Eyes today will be on the central bank interest rate decision and press conference that follows. Rates are widely forecast to be held at 0.15%, so attention will be focused on the ECB press conference, where traders will look for indications on future policy decisions or more importantly, the possibility of some form of quantitative easing being introduced. Should we see a deviation from the 0.15% level or the engaging of QE by the ECB, expect markets to respond accordingly.