The EUR/USD has pushed through March 30 highs, rallying before the ECB announces its monetary policy decision. While the 50 basis point cut analyst expect is likely, investors will be more interested in what Claude Trichet has to say about the ECB's potential use of quantitative easing.
Trichet will likely say the ECB doesn't need to cut the benchmark rate further. However, this is what the ECB has said after each of their other rate reductions.
As a result of investor apprehension, the EUR/USD is showing limited gains as compared to other major Dollar pairs such as the GBP/USD and AUD/USD. Nevertheless, the EUR/USD will likely follow its positive correlation with U. S. equities.
