Positive PMI data from the Eurozone helped to lift the Euro higher against the Dollar, but whether that support endures remains to be seen. Markets are eagerly awaiting the ECB rate decision announcement which will be made shortly and the customary press conference which follows. The Euro has been higher over the past few days as carry trade investors have sought out the low-yielding Euro. That, however, is not the outcome that the ECB would like to see given its various attempts to devalue the Euro to increase commerce and trade. What Mario Draghi and the ECB decide to do to put a halt to the interest in the Euro are exactly what investors are waiting to hear. Specifically, the question is will the ECB ease further or will Mario Draghi verbally talk down the Euro with the threat of future intervention.

As reported at 11:40 am (BDT) in London, the EUR/USD was trading higher at $1.1224, a gain of 0.0045%; the pair ranged from $1.1205 to $1.1245. The EUR/GBP was also higher at 0.7345 Pence, a gain of 0.13%. The pair had a relatively tight trading range of 0.7323 Pence at the low end and 0.7374 Pence at the high.

Yen Pushed Higher on Safe Haven Drive

The Japanese Yen was also supported by the safe haven drive. And like the ECB, that goes against the Bank of Japan’s intent to keep the Yen weak. The ECB has been trying to encourage growth in the Japanese economy which has been stagnant for several quarters now. The EUR/JPY pair was trading at 135.0250 Yen, a fall of 0.05% for the Euro. The USD/JPY was lower at 120.3185 Yen, down 0.03%.

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