Euro gives up six-week high ahead of ECB's decisions

Euro fell in European trade on Thursday against a basket of major rivals, giving up six-week highs against the dollar on profit-taking as investors shun risks ahead of the European Central Bank’s policy decisions. 

Interest rates are expected to hold at record 2001 highs for the fourth meeting in a row, however, the meeting will likely provide more clues on the future path of European interest rates. 

EUR/USD

EUR/USD fell 0.1% to 1.0891, with a session-high at 1.0907, after closing up 0.4% on Wednesday, the fourth profit in a row, marking a six-week high at 1.0915, after Fed Chair Jerome Powell’s Congressional testimony. 

The ECB

Now markets await the European Central Bank’s policy meeting later today following important developments in the eurozone, including the slowdown of inflation in February. 

The markets fully expect the ECB to maintain interest rates unchanged at 4.5%, the highest in 23 years. 

The ECB said following the January meeting that main interest rates currently will contribute to bringing inflation towards the 2% target. 

ECB President Christine Lagarde said it’s still too early to talk about rate cuts in the eurozone, however she acknowledged the risks that threaten growth.