Euro under pressure, will today’s ECB announcement undermine it further?

The euro failed to hold its ground yesterday and continued its slide against both sterling and the US dollar. Rate movements were not sharp, but continued throughout most of the day. Construction data from the UK and positive employment figures from the US contributed to the strengthening of both currencies against the euro, whilst slightly worse-than-expected Spanish unemployment figures did nothing to support the euro.

Today at around 12.45pm the European Central Bank (ECB) will announce its monthly interest rate decision. Given the major changes announced at last month’s meeting, the ECB are unlikely to act again. However, the press conference that follows today’s meeting may provide some insight into appetite for additional monetary stimulus. As Eurozone economic data has not had a great impact on the performance of late, we could see the words of ECB President Mario Draghi spur increased movement in euro rates.