This week, traders pay close attention to the policy meetings of the Bank of Japan and the European Central Bank. Japan’s financial regulator has already unveiled its plans regarding the further policy stance, so now market participants are waiting for the results of the ECB monetary policy meeting. On Thursday, the ECB Governing Council will hold a meeting. Investors hope that the bank’s officials will confirm their plans to taper the quantitative easing program this autumn. However, some experts are less optimistic as they doubt that the European financial watchdog will dare to change its monetary policy stance. Amid these doubts, the EUR/USD pair failed to extend its gains. The single European currency is trading at the level of 1.2240 against the US dollar. Analysts expect that the pair will be trading flat until Thursday. Earlier, currency strategists forecasted high volatility of the euro exchange rate due to the ZEW reports. However, the published macroeconomic statistics did not make the desired impact.
The British pound is also moving in line with the expectations of the investors. The more so, the policymakers of the Bank of England said that the monetary policy should be tightened in the near future. Probably, it provided support to the GBP/USD pair that had hit the 18-month peak at 1.40. Additionally, the pound exchange rate is still highly dependent on the Brexit issue. Experts hope that the United Kingdom and the European Union will finally reach a compromise in the near future. Anyway, the European assets will continue trading higher until the greenback becomes attractive to investors.
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