EUR/USD: on the eve ECB meeting

Today the market participants will focus on the ECB meeting. Its decision on rates will be published at 11:45 (GMT), and at 12:30 the bank’s press conference will begin, during which its head Christine Lagarde will explain the decision and, probably, indicate the nearest prospects for the bank’s monetary policy.    Many observers are inclined to believe that the ECB will not change interest rates, and in general, its monetary policy will remain unchanged for now.   The measures taken by the ECB support risky European assets, however, there remains a high degree of uncertainty in macroeconomic prospects and a lack of clarity around whether the response of the authorities of the Eurozone countries to the crisis will be sufficient. The EU summit, which is supposed to discuss the creation of a recovery fund, is scheduled for July 17-18, after the end of the ECB meeting. However, the ECB also has no room for further easing of monetary policy, compared to the Fed, which may re