EUR holds gains ahead of ECB meeting – Scotiabank

The Euro (EUR) is trading defensively while holding modest weekly gains against the US Dollar (USD). Short-term rates and messages from the ECB provide fundamental support to the Euro. Market participants are closely watching the upcoming ECB meeting for insights on interest rate direction and policy shifts, which are expected to significantly influence EUR's movement. Given the current circumstances, there’s a risk that EUR could face selling pressure, but in the short term, ECB's interest rate policies will be crucial for the Euro, especially if they decide to maintain or raise rates.