Traders watch for hints at ECB monetary policy meeting
Yesterday, the main FX pairs remained range bound throughout the European session, with the only notable move to register being the US dollar, which gave back some of its gains from the day before. Overnight though, the greenback has come under some more pronounced downward pressure, most notably versus the euro and sterling.
As trading gets underway this morning, the weaker dollar is evidenced by EUR/USD opening up above the $1.09 threshold while GBP/USD has regained the $1.31 platform, having started yesterday below $1.30. EUR/GBP remains in the lower half of the 83-84p corridor.
Turning to the day ahead, the main highlight will be the latest ECB monetary policy meeting. However, no changes to policy are anticipated. Traders will be paying close attention to the press conference for any comments on inflation and policy tightening and so the meeting poses some evident risk for the euro.
Elsewhere, US retail sales data for March is due with a 0.6% rise in the headline figure expected. However, barring any major surprises the data are unlikely to impact the dollar as investors continue to follow news around Ukraine and Boris.