European Central Bank Resolution Preview: Expected to remain unchanged, markets are focusing on Lagarde's attitude towards the Euro.
Giuseppe Dellamotta, analyst at the American financial website Investinglive, said that the European Central Bank is expected to keep interest rates unchanged today and is expected to maintain a policy stance that is data-driven and will be evaluated at each meeting. Data released since December last year has not shown a need to adjust monetary policy. ECB officials have repeatedly stated that the current monetary policy is in a "appropriate position" and will not respond to minor or short-term deviations from the 2% target unless the economy faces clear shocks. Today, the market focus will mainly be on Lagarde's press conference, and questions are likely to be raised about the recent strength of the euro. In fact, last week, after the euro broke the 1.20 level against the dollar, some ECB officials made "verbal interventions" on the euro through comments. It is expected that Lagarde will maintain a neutral tone and not release too many explicit signals. If she shows clear discomfort with the strength of the euro, combined with continued improvement in US economic data, the euro may weaken further.
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