EUR/USD Moves Above 1.4300 on ECB Expectations

Wednesday, 06 April 2011 15:45

The EUR/USD hit 1.4348, its highest level in over a year, in anticipation of Thursday’s ECB rate hike.

Analysts widely expect the ECB to raise its Minimum Bid Rate by 25 points to 1.25% on the back of better economical conditions in Europe.

In the event of a rate hike, the EUR/USD could push significantly higher to reach2009’s 1.5143 high. The move breaks an important resistance level (1.4280). It also continues the uptrend which started in mid-January and which allowed the euro to gain 11% in the span of just three months.

Investors also wait for ECB President Jean-Claude Trichet’s press conference for hints about future monetary policy.