The majority of bank analysts are expecting no changes in policy or language from the ECB later today but I’m hearing a slightly different story.
The ECB will not be pleased to see EUR/USD trading near 1.40 and I would not be at all surprised if the statement language is more bearish than expected and lays the groundwork for some not unexpected policy changes next month.
I don’t like trading these risk events but if I did, I’d be trading the EUR crosses with a modest bearish bias intraday.