Euro Steady Ahead of Draghi Conference
The euro traded steadily ahead of the European Central Bank's monthly meeting on Thursday. The common currency was at 1.3537 at 8:15 GMT on Thursday morning.
The ECB policy meeting is expected to produce little change in the region, as most are expecting the bank to keep the 0.75 interest rates unchanged. Investors will be waiting for ECB President Mario Draghi's press conference following the meeting for clues about future policy changes and his assessment of the currency's strength.
After January's meeting, Draghi's confidence caused a euro rally that some have said did more to hurt the region than help it. On Tuesday, French President Francois Hollande spoke out about his concerns about the region's exchange rate. With many of the eurozone countries struggling to regain their footing, a strong euro poses a challenge for their exports.
According to Bloomberg, the ECB is one of the only major central banks that isn't taking part in the so called “currency war”. Nations like Japan, America and England are all spending money to boost their economies, fighting problems like unemployment and deflation.
Most are expecting Draghi to follow Tuesday's ECB meeting with a more cautious view of the eurozone's economy in an effort to control the currency's appreciation verbally.
Following the meeting, Draghi may also field questions regarding Monte dei Paschi di Siena SpA, an Italian bank facing criminal charges over its use of false bookkeeping to manipulate the market. With the bank's scandal appearing recently in the news, Draghi will be forced to answer to the public about his role in Monte Paschi when he was governor of the Bank of Italy
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