The pair remains trapped in a narrow trading range

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Trading continues in a very tight range as everyone’s eyes are on tomorrow’s European Central Bank meeting.

The ECB should announce the end of quantitative easing and give clearer messages about its intentions regarding the next interest rate hikes .

Markets turned their attention to Ms. Lagarde’s comments tomorrow.

The chances of a first 25 basis point hike are limited for tomorrow and if that happens, it would be a surprise.

Markets appear to be ”pricing in” that interest rate hikes will begin in July.

Since Lagarde has already signaled moves in terms of upsides, the focus will be on comments regarding the speed of those moves.

With markets having ”price in” all of these moves we should see Lagarde aggressive enough to pleasantly surprise with his words so that the Euro can build strong bullish momentum.

For which we have serious doubts as to its possibility of existence.

Inflation levels at discrete levels, energy prices which, most likely, if they continue to rise, will begin to create social unrest.

An explosive mix of events and situations affects the whole of the European economy, the prospects of which are called into question.

With this in mind, we continue to maintain our position that short-term momentum could favor the US currency.

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