What effect could today’s interest rate announcement have on the markets?

The euro had a quiet day on Wednesday as investors eagerly awaited today’s all-important interest rate announcement. Consumer confidence data for the Eurozone did fall, but not as much as anticipated so the market was able to remain steady.

The European Central Bank (ECB) will vote on whether interest rates will remain at 0% tomorrow, and will most likely vote for them to stay low – at least for this month. However Mario Draghi’s speech afterwards will be intensely scrutinised to see what impact he thinks ‘Brexit’ will have on the European economy in the short term, and if any adjustment to the current monetary policy will be necessary. If so, then we should expect a reasonable amount of euro weakness tomorrow – but this will not be confirmed until Mario Draghi begins his speech.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency purchasing strategies