The EUR/USD pair is trading at $1.3638, with little change on the day as traders sit on their hands ahead of the announcement from the president of the European Central Bank at 3.30pm (London time).
The level of industrial production in the eurozone dropped by 0.7% in December compared with November; the consensus was for a decline of 0.2%. There has been a lot of talk of deflation in the region lately but Mr Draghi has so far failed to acknowledge proof of this. There is growing speculation that the ECB will embark on a stimulus package to ramp up consumer confidence. If Mr Draghi drops any hints regarding this the ECB could intervene to tackle falling prices in the region, and we could see the euro drift lower.
As Brenda Kelly commented yesterday, the euro is holding its upward trend and finding support around $1.3485/90. Mr Draghi is therefore more likely to dismiss a deflation threat than acknowledge that the eurozone is heading towards a slump.