EURO Trades higher pre ECB

SINGAPORE (Reuters) – The euro inched higher on Thursday, as investors awaited details of the European Central Bank’s plans for scaling back its bond-buying stimulus programme, while the dollar took a breather after its recent rally.

The euro inched up 0.1 percent to $1.1819, having edged up from a two-week low of $1.1725 that had been set on Monday.

 The ECB is all but certain to cut back on its bond-buying stimulus on Thursday, taking its biggest step yet in unwinding years of loose monetary policy.

Since inflation remains low, however, any reduction in the monthly amount of asset purchases is expected to come with a lengthy extension of the programme.

Still, there seems to be some caution toward the risk that the ECB’s policy announcement could give a lift to the euro, said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.

“The market may be hedging for a hawkish surprise,” Innes said, referring to the firmness in the euro in recent trading sessions.

Reuters

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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