The European Central Bank (ECB) policy meeting was among the key events that the market paid attention to during today’s European session.
While no drastic action will be taken, the market expects the central bank to change their stance in an effort to curb the recent sell-off in the bond market leading to an increase in bond yields.
According to Reuters, some analysts believe the ECB will make asset purchases under their Pandemic Emergency Purchase Program (PPEP) to help stem the rise in yields.
However, there are also analysts who say the change will not happen, instead there will only be verbal intervention, or hints from the statement of ECB President Christine Lagarde.
In addition to slow vaccine launches, long lockdowns and increased yields, the ECB has many things to worry about.
At this point, there is no doubt that the European Zone will lag behind in recovery especially compared to the United States which has just approved a $ 1.9 trillion stimulus package.
Following that, President Lagarde will likely do something to continue to support stability in currency markets and economic growth.
Meanwhile, the euro continued to capitalize on the upside opportunities from the weakening greenback dollar to rise higher during the opening of the European session.
