Traders will also scrutinize the press release by Jean-Claude Trichet, President of the ECB to find out the direction of future interest rates in the Euro Zone. In the event that the ECB decides to hold interest rates steady in the near term, the Euro will likely surge against the U.S. Dollar in today’s afternoon trading.
With regard to the BoE, the Sterling traders will also scrutinize their press release to ascertain possible future rate reduction. In recent weeks, the Pound Sterling has faltered in the forex markets, and yesterday it dropped to a record low of 80P (pence) against the Euro.
According to Ian Stannard, a strategist at BNP Paribas, investors expect that the Bank of England will pursue more aggressive measures to ease the liquidity crisis.