EUR/USD Trades Tight Range before ECB rate decision and NFP Report
Today the EUR/USD traded in a tight range ahead of Thursday ECB monetary policy decision and Friday U.S. employment report. As the European Central Bank is expected to keep rates unchanged, investors will be looking for clues on a future policy shift of its bond-buying program during ECB President Mario Draghi press conference.
Friday February non-farm payrolls report is the most important economic news of the week. Only a dismal report could postpone the Fed plan to raise interest rates next week. With traders pricing in a higher than 85% chance of a hike, a March interest rate increase is seen as nearly certain. However, as wage growth continues to be a primary concern, the report may influence expectations about the number of future hikes.
EUR/USD Daily Chart