With the announcement of monetary policy by the European Central Bank ahead, the currency market has paused waiting for the report to appear.
The consensus of analysts specializing in this field indicates no change in the interest rate. Although we cannot exclude it, taking into account the seriousness of the debt crisis which affects a large part of Europe.
But if there were no changes, the expectations will start 45 minutes after the announcement, when the president of the bank Mario Draghi starts his regular press-conference explaining the decision and the measures to be implemented.
Actually, Draghi is expected to announce a new plan to stimulate the European economy, or at least the countries which were most affected by the crisis with the help of complex financial mechanisms. Beyond this issue, which concerns us, we should see how the euro can be influenced by such measures. So any injection of money will cause a significant drop in the euro, which remains very high versus other leading currencies in recent days.
No wonder if we see the common European currency to fall to 1.30 during the American session, although by that time the "pattern" of the market usually is the Dow Jones and its behaviour.
At 8:30 we expect the data on jobless claims weekly. This figure has been growing steadily in recent periods, and is downgrading favourable data of the rest of the U.S. labor market.
Later at 10:00 the ISM service will be released, which is expected to be slightly below the figures of the previous month, but without a decisive impact on the price of currencies.
Moreover, there have been no significant changes in the major pairs in the last hours. Only a slight decline of the pound sterling as a result of a weak PMI services in the UK. But the strong movements will be after the presentation of Mr. Draghi.