Euro flat ahead of ECB meeting

The euro is broadly unchanged versus the US dollar as traders await the European Central Bank interest rate decision tomorrow.

The EUR/USD is trading at $1.3727, generally flat on the day. Volatility is low in the wake of the political stalemate between Ukraine and Russia, and dealers are looking ahead to the ECB interest rate decision and statement tomorrow. The euro has lost ground over the last few days because of the uncertainty surrounding Ukraine which propelled a flight to the US dollar; as tensions decrease we could see the euro pull back it losses.

At 12.45pm (London time) tomorrow, the ECB will announce its interest rate decision. The consensus is to keep the base rate at 0.25% but the statement at 1.30pm will be the real focus. Last week, the eurozone revealed inflation ticked up in February by 0.1% to 0.8%, dispelling any rumours of any further interest rates – for now at least.

The euro has been trading within a tight range of $1.3708 and $1.3770; if Mario Draghi continues to hold off on a stimulus package for the eurozone, it could push the euro towards the $1.38 level. 

Spot FX EUR/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.