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 its policy rate decision, 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.Bank of Canada Governor Macklem addressed the impact of U.S. tariff measures during a press conference. He stated that “our ability to take forward-looking action is more limited than usual,” 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 the pair 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, a band walk along the +2σ line of the Bollinger Bands is observed.

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: ECB President Lagarde’s press conference, 23:30: U.S. Weekly Natural Gas Inventories, and 24:45: Remarks by Fed Governor Barr. I plan to closely monitor the euro’s price movements following the ECB policy rate announcement.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed