Euro Falls Ahead Of ECB Rate Decision
March 07 2024 - 12:03AM
RTTF2
The euro weakened against other major currencies in the European
session on Thursday, as investors remain cautious about the ECB's
rate decision as well as President Christine Lagarde's press
conference for directional cues.
The European Central Bank is set to keep its main Refinancing
Operations Rate unchanged at 4.5 percent for the fourth time in a
row and the Rate on Deposit Facility at 4 percent, as it awaits
strong evidence of receding inflation.
Traders expect the ECB rate decision could signal potential
future cuts in case there is more evidence that inflation remains
under control.
The policy decision is due at 8.15 am ET. ECB Chief Christine
Lagarde holds press conference at 8.45 am ET.
In the Asian trading today, the euro showed mixed trading
against its major rivals. While the euro held steady against the
pound, the greenback and the franc, it fell against the yen.
In the European trading now, the euro fell to a 3-week low of
161.04 against the yen, from an early high of 162.69. On the
downside, 158.00 is seen as the next support level for the
euro.
Against the pound, the Swiss franc and the U.S. dollar, the euro
slipped to 0.8548, 0.9593 and 1.0888 from early highs of 0.8563,
0.9621 and 1.0907, respectively. If the euro extends its downtrend,
it is likely to find support around 0.84 against the pound, 0.94
against the franc and 1.07 against the greenback.
Against the Australia, the New Zealand and the Canadian dollars,
the euro dropped to nearly a 2-week low of 1.6519, an 8-day low of
1.7692 and a 3-day low of 1.4710 from early highs of 1.6603, 1.7788
and 1.4741, respectively. The euro is likely to find support around
1.64 against the aussie, 1.74 against the kiwi and 1.45 against the
loonie.
Looking ahead, U.S. and canada trade data for January and U.S.
weekly jobless cliams data are slated for release in the New York
session.
At 10:00 am ET, Federal Reserve Chair Jerome Powell will deliver
semiannual monetary policy testimony before the Senate Banking
Committee, in Washington D.C., U.S.
At 11:30 am ET, Federal Reserve Bank of Cleveland President
Loretta Mester speaks virtually on the economic outlook as part of
the European Economics and Financial Centre's Distinguished Speaker
Series, in Cleveland, U.S.
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