David Song, Currency Analyst at DailyFX, comments on the ECB

"The Euro bounced back on Wednesday to maintain the range-bound price action carried over from the previous week. The single currency should continue to track sideways ahead of the European Central Bank interest rate decision as market participants weigh the outlook for monetary policy. However, the EURUSD may fail to hold above the 1.2750 region as we anticipate the ECB to adopt a more dovish tone for monetary policy, and central bank President Mario Draghi may show a greater willingness to push the benchmark interest rate to a fresh record-low in an effort to steer the region out of recession. At the same time, the Governing Council may have little choice but to further embark on its non-standard measures as the governments operating under the single currency become increasingly reliant on monetary support, and the ECB may carry out its easing cycle throughout 2013 as the euro-area struggles to return to growth."