EUR Trading Outlook (04-05-2012)

The euro (EUR) recorded gains against most of its major counterparts as the European Central Bank (ECB) announced its lending rate unchanged at 1.00%. As this was what the market expected, investors immediately turned their attention to the press conference that followed. ECB President Mario Draghi was less dovish than anticipated and promoted a sense of unanimity within the central bank, improving market sentiment. Against the Brittish pound, the single currency had a volatile ride plunging to 0.8102 – a near 2-year record low – from its open at 0.8120 but managed to close in a slightly positive area at 0.8124.