Wednesday, April 3, 2013

Market focuses on ECB Meeting.

The Euro declined against almost all of its 16 major peers ahead of a report that is expected to show that consumer-price inflation in the Euro region has slowed in March.
 
While Europe's economy is viewed by investors as remaining fragile, many are not willing to purchase the Euro as a rate cut remains an option for the ECB.

According to most economists though, the ECB seems set to keep its benchmark rate unchanged on Thursday.

On Tuesday, data was released that showed that the Euro region's jobless rate has risen to a record 12% in January and February. This has added to signs that the currency bloc's recession has extended into the first quarter.

The ECB has predicted that the Euro region's economy will contract by 0.5% in 2013 and has kept its key interest rate at 0.75% since July 2012. In the past month the Euro has weakened by 1.9%
 
Earlier today the Euro had dropped by 0.1% to $1.2803 and by 0.2% to 119.61 Yen. The Yen remained little changed at 93.42 to the Dollar.

The Bank of Japan (BoJ) has started a two day conference and is forecast to combat deflation by boosting bond purchases.