EUR/USD at 1.2820 effectively unchanged from where North America closed out Wednesday. ECB rate announcement and subsequent Trichet press conference awaited.
While it’s an almost caste iron certainty ECB will leave rates on hold, there is speculation they may come up with something to try and calm investor’s nerves. Talk of possible move to reverse the withdrawal of emergency lending measures and/or dilute collateral rules further (it has to be noted earlier action to do the latter only increased pressure on the euro.) Even talk that bank could consider buying government bonds , but recent comments from ECB’s Weber suggest this unlikely.
Euro zone data releases very thin on the ground today:
10:00 GMT: German factory orders for March expected +1.4% m/m, +21.1% y/y
11:45 GMT: ECB rate decision.
