EUR/USD remains neutral ahead of the ECB policy meeting on Thursday. The USD/JPY pair had a strong negative day due to the strength of the Japanese yen, following Shinzō Abe winning at the snap election. Meanwhile, USD/CAD has its fourth consecutive positive day.
Euro Quiet Ahead of ECB Policy Meeting
The euro was calm on Monday and early Tuesday as the traders are focused on the ECB policy meeting on Thursday, despite the political concerns. ECB President Mario Draghi is going to announce changes to the bond-buying program which are difficult to satisfy both the hawkish and dovish market participants. The preliminary consumer confidence released yesterday, showed a marginal improvement in October, to -1.0 against -1.2 before and market consensus of -1.1. Looking at today’s data, the epicenter will be the Markit PMIs for Euro area and Germany. The manufacturing PMI in the Euro area is forecasted to slow down to 57.8 in October against 58.1 the previous month, while the services PMI is expected to edge higher to 55.9 from 55.8 before.
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