The euro on Wednesday struggled as we wait for today’s mid-day announcement from the European Central Bank (ECB). Uncertainty on what measures the ECB will finally undertake in order to boost the Eurozone economy and to stave off deflation is occupying many column inches in the press. Expectations are for further cuts in the already very low euro interest rate and some form of quantitative easing in an attempt to boost lending to business. What this all means is that we will more than likely see some significant movements in the euro as history would suggest that the ECB rarely meets market expectations.
There is also a monthly retail sales forecast to come out at 0.1% – any surprises could also cause movement in euro markets.