EURO CLOSE TO 3 MONTH LOW VERSUS DOLLAR AHEAD OF ECB DECISION
The euro rose 0.2% yesterday after it reached its lowest level versus the dollar since December ahead of concerns about the European Central Bank's policy meeting later today.
Most analysts are expecting the ECB to leave rates unchanged at 0.75% yet there are still concerns regarding the economy outlook and as such the prospect for future rate cuts is more likely. Indeed data coming out of the Eurozone yesterday revealed a 0.6% contraction in the single-currency's economy. The bank may be forced to cut rates, or adopt more long-term loans to banks.
Following the bank's rate decision, Draghi will be holding a press conference where he is likely to address the Italy concern.
Meanwhile, figures coming out of the US are supporting the dollar as ADP employment change yesterday revealed that 198,000 more jobs were added to the private sector last month. Contrary to what's happening in the Eurozone, this data coming out of the US is showing positive signs for recovery and growth.
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