The euro currency posted gains toward the close of business on Wednesday. The gains came after the U.S. and the Eurozone reached an agreement on industrial tariffs. The agreement came as the U.S. President Trump met with Juncker from the EU.
Economic data on the day saw the U.S. new home sales rising 631k on the month. This was lower than the forecasts.
The ECB’s monetary policy meeting will remain the key event for the day amid lack of any other fundamentals. No changes are expected from the central bank at this week’s meeting. Still, investors will be sifting through the data for clues on the forward guidance.
The ECB President, Mario Draghi is expected to maintain the status quo. Today’s meeting comes just after the ECB announced its QE tapering plans at the last month’s monetary policy meeting. The recent downtick in core inflation is expected to keep policymakers taking a cautious approach.
Elsewhere, the U.S. durable goods report will be coming out. The median forecasts point to a 0.5% increase on the core durable goods orders while headline durable goods are expected to rise 3.0% on the month.
