EUR/USD Drops to 1.2980 Before ECB Meeting

The euro traded 0.1 percent from the lowest in almost three months amid speculation European Central Bank President Mario Draghi and his policy board will revise down their economic outlook and signal monetary easing today.

The pound dropped to the lowest since July 2010 before the Bank of England meets. Poland’s central bank unexpectedly cut its main interest rate to a record low yesterday amid Europe’s debt crisis. The dollar was near the highest level since May 2010 versus the yen before data tomorrow forecast to show U.S. companies added more workers in February.

“The euro and sterling are heavy as markets speculate on the possibility of surprises from central banks with both the ECB and BOE meeting after Poland surprised,” said Tim Kelleher, Auckland-based head of institutional foreign-exchange sales at ASB Institutional, a unit of Commonwealth Bank of Australia. (CBA) “If non-farm payrolls are strong you’ll probably continue to see dollar strength.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.