Monetary policy meeting in Frankfurt of Governing Council of the ECB is scheduled on Thursday 24thOctober. Publication of the monetary policy decision should according to the plan happen at 13:45 CET.
EUR/USD struggles to hold its ground in shadow of ECB meeting, which led to a pull back from October high of 1,118. Sentiment on Wednesday is mixed. EUR/USD revolved around 1,112 a day before the meeting. The recent correction appears to be losing steam as the bullish move from the start of the October failed to test August-high at 1,125.
The most recent data suggest that Eurozone is not doing as good as Governing Council expected. ECB document says: “incoming information since the Governing Council’s July monetary policy meeting indicated a more protracted weakness in the euro area economy than previously expected.“
ECB meeting on Thursday will be the last on for current President Mario Draghi. No changes in ECB policy settings are expected. A cautious approach is likely to be taken and any major decisions will be made after the change of leadership. Markets eye central bank’s program of asset purchase that should start in November under new leadership of Christine Lagarde.