020 7898 0500Yesterday was a more positive day for the euro, following a negative start to the week as the single currency appreciated against the US dollar and made moderate gains against sterling. The final Services Purchasing Managers’ Index data was significantly improved, showing reasonable growth in the sector. This was enough to give the seventeen-nation currency a boost and cause some appreciation in major pairings. Performance may have also been influenced by speculation surrounding today’s European Central Bank (ECB) interest rate decision. Influential sources were suggesting yesterday that the ECB would keep rates at 0.5% rather than reduce them to 0.25% as had been speculated. Therefore all eyes then will be on European Central Bank president Mario Draghi today as he announces the rate decision as investors will be keen to interpret and analyse his words on future interest rates decisions. Call your trader now to see how markets react to the decision and to hedge your risk going forwards.
