Forex
EUR/USD Surges Ahead of ECB Decision
The EUR/USD pair has risen to around 1.1430 ahead of the European Central Bank's monetary policy announcement on Thursday.
The ECB is expected to keep its policy rates steady, which would provide little surprise for investors, but they will be looking closely at the bank's assessment of inflation risks in the Eurozone economy.
According to a Reuters report, traders are pricing in two more interest rate hikes from the ECB this year, and market participants want clarity on whether fears of second-round effects of inflation are real. ECB policymaker Fabio Panetta has said that the bank's goal is to keep inflation expectations firmly anchored.