EUR/USD is having a rare day in negative territory. Currently, the
pair is trading at 1.2006, down 0.24% on the day.To get more news about [url=https://www.wikifx.com/za_en/]WikiFX[/url], you can visit wikifx.com official website.



　　The euro has been in fine form in April, racking up gains of 2.3%.
The currency has made up most of the ground lost in March, when EUR/USD
fell by 2.8%. The direction of the U.S. dollar has, to a large degree,
been dependent on 10-year US Treasury yields. In March, yields moved
higher and provided the dollar with a lift. Conversely, with yields
retreating in April, the dollar has suffered broad losses.



　　ECB Expected To Stay Pat



　　The ECB holds its policy meeting on Thursday, and the central bank
is widely expected to hold the course on monetary policy and leave the
main financing rate at 0.00%.



　　With the developed economies expected to show significant recovery
in 2021, there have been rising concerns about taper tantrums, once
central banks change their ultra-accommodative stance, which has been
put in place in order to deal with the severe economic downturn caused
by the COVID-19 pandemic.



　　This is unlikely to be an issue with the ECB, which appears
determined to continue fiscal and monetary support for the Eurozone
until the recovery is well under way. Once that occurs, the ECB can be
expected to reduce purchases under its emergency pandemic programme
(PSPP), while continuing its traditional QE program, under which the ECB
has been purchasing bonds in the amount of EUR 20 billion/month
throughout the COVID pandemic.



　　With the upcoming ECB meeting expected to be a “snoozer,” the
meeting could well be a non-event for the euro. It has been a good week
for the euro, which punched past the symbolic 1.20 level this week for
the first time since March 4. The currency could get a bit of a boost if
ECB President Christine Lagardes comments after the meeting are more
optimistic than expected.