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 the previous day, the Canadian dollar fluctuated briefly immediately after the Bank of Canada (BOC) announced its policy rate decision yesterday, in which the rate was held steady 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 MacRem commented on the impact of U.S. tariff measures. He stated that “our ability to take a more forward-looking approach than usual is limited,” 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 pair 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 at 8:50, Japan’s foreign/inward securities investment at 8:50, the Australian employment report at 10:30, the German Producer Price Index at 15:00, the ECB policy rate decision and statement at 21:15, U.S. initial jobless claims and Canadian international securities turnover at 21:30,U.S. Housing Starts, and the U.S. Philadelphia Fed Business Outlook Index; at 21:45, the Eurozone’s ECB President Lagarde will hold a press conference; at 23:30, the U.S. will release weekly natural gas inventories; and at 24:45, U.S. Federal Reserve Governor Barr is scheduled to speak.We intend to carefully monitor the euro’s price movements following the ECB’s policy rate announcement.