We have been seeing two-way movement in the euro in the lead up to today’s European Central Bank’s (ECB) Interest rate and Quantitative Easing (QE) programme decision. Reports yesterday afternoon suggested that the ECB will put forward a €600 billion per annum program of QE to last until the end of 2016, and will look to start buying bonds from March this year.
Interest rates are expected to remain at an all-time low at 0.05%, but the focus will be on the press conference that follows, where we expect them to announce their QE plans. Will it match what was rumoured yesterday, only time will tell, but whatever the announcement is we are likely to experience quite a bit of movement in the euro exchange rate during the course of the today. Which direction it moves is the unknown.