The euro remained under pressure against a dollar that stayed close to its eleven-week high, as market participants primarily price in the anticipated easing measures from the European Central Bank (ECB).
Market attention is focused on Christine Lagarde’s upcoming speech, with traders closely scrutinizing any hints regarding the ECB’s next steps, especially as the eurozone grapples with slowing economies and rising deficits.
There is a growing expectation that the ECB will adopt a less restrictive monetary policy.
Meanwhile, treasury yields were rising across various maturities ahead of the ECB decision. Yields could change direction and see more volatility in reaction to Lagarde’s comments.
Looking ahead, the future movements of the euro-dollar pair will depend on the ECB’s decisions and forthcoming U.S. economic data, including retail sales and industrial production. Any surprises in these figures could trigger additional volatility in the euro-dollar pair.
