Investors Eagerly Awaiting ECB Meeting

The euro saw a light trading day yesterday, as investors continued to wait for Thursday's ECB policy meeting to see if any new steps to boost the euro-zone economic recovery will be unveiled. The EUR/USD moved up more than 60 pips over the course of the day, eventually reaching as high as 1.2317 before correcting itself and dropping to the 1.2290 level. Against the Japanese yen, the euro was up just over 30 pips by the afternoon session to trade as high as 96.26. Turning to today, the euro could see heavy movement against the US dollar depending on the result of the US ADP Non-Farm Employment Change figure. If the figure comes in above the forecasted 122K, confidence in the US economic recovery could go up, which may result in the EUR/USD dropping during mid-day trading. On Thursday, traders will want to remember to pay attention to the ECB Press Conference at 12:30 GMT. If any new plans to lower Spanish and Italian borrowing costs are announced, the euro could see significant gains.

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