The EURO did it again... Because of speculation from ECB bond purchases and risk appetite in the markets, the euro ended the day higher. EUR/USD closed at 1.2594 after testing the 1.2500 handle, while EUR/JPY registered a 19-pip gain.
Judging by the dots on our forex calendar, the euro is in for a big day! Not only will France conduct its 10-year bond auctions, but Germany will also publish its factory orders report at 17:00 (GMT +7).
Of course, all other economic reports have nothing on the big boss of economic reports scheduled today. I’m talking about the ECB’s interest rate decision At 18:45 (GMT +7) we’ll know if the central bank has decided to cut its rates like many market players are predicting.
At around 19:30 (GMT+7) Super Mario will take center stage, where he is expected to announce some form of bond-buying program that would help ease the sky high peripheral bond yields. Will the ECB present a clear program and inspire risk appetite, or will it disappoint expectations by leaving a lot to interpretation?
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