Euro set to gain as ECB prepares to meet
Analysts are expecting gains for the euro today amid encouraging economic signs from the continent.
This morning the euro was at 1.4357 against the pound, while the dollar was at1.2152 to the single currency.
ICAP Australia analyst Michael Thomas told Bloomberg he was expecting European Central Bank (ECB) president Jean-Claude Trichet to follow up his comments about the European economy and the prospects for growth at this week's meeting of the ECB.
Trichet said earlier this week that he remains committed to price stability in a speech at an Institute of International Finance meeting, stressing the importance of curbing inflation.
Now Mr Thomas is predicting further details from the president which should shed some light on potential plans for a rate hike next month.
"A lot of people will be looking toward Trichet's press conference after this week's meeting to confirm a May rate hike,'' he said.
"Confirmation of this will be bullish for the euro and negative for the dollar.''