Euro roses ahead of ECB’s decisions and comments Mario Draghi


EUR rose in the European market on Thursday against a basket of world currencies to keep its gains for the fourth day in a row against the USD. The rise comes ahead of the ECB’s decisions at the end of its regular meeting and comments by bank governor Mario Draghi. The bank maintains interest rates and bond buying program with little change, but Draghi is expected to provide new indications about the future of stimulus policies and bond buying program.

The EURUSD pair is trading at 1.1940, from 1.1915 to 1.1944, at 1.1944, and the low of 1.1913.

Yesterday, the EUR gained less than 0.1 % against the USD , its third consecutive daily gain, as the greenback fell to a one week low against a basket of world currencies.

European interest rate decision will be released by 11:45 GMT. ECB Governor Mario Draghi will speak by 12:30 GMT. Most economic forecasts indicate that interest rates will remain unchanged at the record low of 0% Bonds worth 60 billion euros per month.

Investors are focusing on Draghi’s comments, which are expected to bear new signs about the future of stimulus policies in the euro zone, especially the bond purchase program, which expires in December.

The ECB had reduced the value of the bond purchase program at the December 2016 meeting to 60 billion EUR from 80 billion EUR per month and extended the program to another nine months from March 2017 to December 2017.

Despite the EUR gains this week, it is still well above last week’s  1.2070 USD, the highest since January 2015.

The single European currency lost some momentum after reaching a two and a half year high against the greenback, on mounting speculation that the strong euro could slow the ECB’s plans to cut its stimulus package.

Investors are also expected to focus on Draghi’s comments on the strength of the euro in the last period. If Draghi does not speak this point, the euro is expected to continue to rise to new highs in two and a half years. However, if the EUR is strengthened, Towards  1.17 USD