The euro has reached a new intraday high on media reports that the European Central Bank is not yet ready to resort to additional monetary incentives when it will discuss this issue at a meeting this month. This, in particular, was reported by Bloomberg, citing an official who’s familiar with the matter.
ECB officials prefer to wait instead of a larger amount of data on the economic situation in the region. The Board of Governors may change its rhetoric and the text of the final statement this month to signal that the introduction of new incentives is inevitable, the source added.
EUR / USD jumped for 0.3% to 1.1321, but by lunchtime Tuesday it is already down. The ECB often uses a way to communicate with the market, such as transmitting information through anonymous sources, to see how markets react.