Euro Mixed Ahead of European Central Bank's Next Rate Decision
The euro ended the day on a mixed note on Wednesday, as EURUSD generally held to a range of 1.4370-1.4440. European data was a bit better than anticipated, as the purchasing managers’ index (PMI) for the Euro-zone services sector was revised up to 45.7 in July from initial estimates of 45.6 and from 44.7 in June. This helped bring the composite index, which covers the services and manufacturing sectors, up to an 11-month high of 47.0 from 44.6.
Looking ahead to Thursday, the European Central Bank is anticipated to leave rates unchanged at 1.00 percent at 7:45 ET. Where the currency ends the day, though, may have more to do with what ECB President Jean-Claude Trichet says during his post-meeting press conference at 08:30 ET. Traders will likely focus on any comments regarding the future of interest rates in the region, including whether 1 percent should be considered the “floor.” Also, any changes to the economic outlook for the Euro-zone could have a heavy impact on euro trade.
Related Article: EURUSD Monthly Exchange Rate Forecast