It's expected that the European Central Bank will keep rates on hold at its actual 3.75%. On the post meeting press conference J.C. Trichet will give hints on the next movement of the Bank, probably pointing to a possible rate hike in the upcoming months. However, opinion is divided on what ECB will do beyond this month.
Check the effect that the result of the meeting will have over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also vote in our Forum Poll: What will be Trichet's decision?
In-Depth Analysis
- Daily Forex Technical Report - Euro Strengthens Against Dollar & Yen, ECB to Remain Hawkish by ActionForex.com
- Daily Forex Commentary - Eye on ECB by Jyske Bank
- ECB: Preview of meeting April 12 by Danske Bank A/S
- Daily Market Briefing - Euro Hesitates Ahead of Comments from ECB Meeting: What to Expect by FXCM
- ECB still on the road to higher rates by KBC Bank
- European Market Update - Markets Quiet Ahead of ECB Rate Decision by Trade The News
- Daily Forex Strategy Briefing - Dollar Falls Ahead of ECB Meeting by CMS Forex
- Forex Weekly Review and Outlook - Dollar Saved by Strong NFP, FOMC Minutes & ECB Featured by ActionForex.com
- EMU economic indicators - On Thursday, the ECB Council will hold its regular monthly meeting by BHF-Bank
- Central Bank Speak - US Fed, ECB by FXCM
- Research Euroland - ECB: Strict policy would better fit ECB view by Danske Bank A/S
Related news
- US dollar softer in Singapore afternoon trade as ECB meeting looms (AFX News)
- IMF says one more ECB rate hike warranted, further moves may be needed (AFX News)
- Europe Rates Seen On Hold As Trichet's French Popularity Wanes (Dow Jones)
- European govt bonds remain lower on strong US jobs data, ahead of ECB decision (AFX News)
Analysts' comments
- Lee More, VP at ForexYard:
"Today's Interest rate decision is expected to leave rates unchanged at 3.75% however even more important is the speech of ECB President Trichet, who is expected to support a continuation of the hawkish behavior in the Euro- Zone and a further rise in the EUR interest rates in the near future." - ForexYard - Boris Schlossberg, senior currency strategist at FXCM:
"The euro rallied against all of the majors in early Asian session as traders bet heavily that the ECB will back up its hawkish rhetoric by signaling a rate increase in May. Dealers will be glued to the broadcast of the ECB press conference at 12:30 GMT today looking for the mention of the word 'vigilance' which has become ECB chief Jean Claude Trichet??™s favorite catchphrase to prepare the market for an upcoming change in monetary policy." - FXCM - Tony Morriss, senior currency strategist at ANZ Investment Bank:
"The focus now has switched to Europe and the ECB. No one is really expecting the ECB to raise rates tonight. What the market is really looking for is whether the ECB is watching inflation data with `strong vigilance' and that sets the tone for a rate rise in the coming months." - Herald Sun - Howard Archer, chief economist at Global Insight:
"Any mention by the ECB of a need for strong vigilance to ensure price stability over the medium term would strongly point to a May interest rate hike." - AP