Euro Retreats From 3-Day High Before ECB Rate Decision

Forex News

Euro declined slightly versus US dollar today. The EUR/USD pair fell by 0.13% to 1.1712 level. Earlier today, the single currency hit a three-day high of $1.1738, as concerns about a global trade war eased after the United States and the European Union agreed to begin talks on lowering tariffs.

After talks with European Commission President Jean-Claude Juncker, US President Donald Trump said that the two leaders are working to achieve the goal of "zero tariffs, zero barriers and zero subsidies for non-automotive manufactured goods." According to Trump, the EU agreed to import more US soybeans and liquefied natural gas. Both sides will seek to reduce industrial tariffs.

Markets are focused on the ECB meeting. It is expected that the regulator will not make any changes in the parameters of its monetary policy, signaling at the same time about the intention to keep the discount rate below the zero mark for at least another year. But the main issue for the markets now is the future of the quantitative easing program, which ends in December. Given the worsening of the world's trading environment, the ECB can pay more attention to the prospects for economic growth by extending the program of bond purchases for this purpose.