Will the market wait and see how the euro reacts to the ECB's policy rate announcement?

Will the market wait and see how the euro reacts to the ECB's policy rate announcement?

17.04.2025

In the U.S. currency market yesterday, the Canadian dollar fluctuated briefly immediately after the Bank of Canada (BOC) announced that it was keeping its policy rate unchanged at 2.75%. The CAD/JPY pair traded between 102.025 and 102.909, with price action straddling the 20-period moving average on the hourly chart.At a press conference, Bank of Canada Governor Macklem addressed the impact of U.S. tariff measures. He stated that “our ability to take forward-looking action is more limited than usual,” while emphasizing that the bank is prepared to take appropriate action as needed.

Among European currencies, the euro rose against the U.S. dollar ahead of today’s ECB policy rate announcement. The EUR/USD pair rose from 1.1278 to 1.1411. The rise followed the 20-period moving average (MA) on the hourly chart. Although it has not yet reached a new high on the 4-hour chart, it has rebounded after touching the 20-period MA, and on the daily chart, the price is moving along the +2σ line of the Bollinger Bands.

Today’s schedule includes the New Zealand Consumer Price Index at 7:45, Japan’s customs-based trade balance and foreign/domestic securities investment at 8:50, Australia’s employment report at 10:30, Germany’s Producer Price Index at 15:00, the ECB’s policy rate decision and statement at 21:15, U.S. initial jobless claims and Canada’s international securities turnover at 21:30,U.S. housing starts, U.S. Philadelphia Fed Business Outlook Index, 21:45: Eurozone ECB President Lagarde press conference, 23:30: U.S. weekly natural gas inventories, and 24:45: U.S. Fed Governor Barr remarks. I intend to closely monitor the euro’s price movements following the ECB policy rate announcement.