The EUR/CHF currency pair was confined within a tight range on Thursday, as investors braced for the outcome of the ECB’s policy meeting later in the day.
The European Central Bank is largely expected to lower its main refinancing operations rate by 25 basis points to 2.90% at its January policy meeting. And, the ECB deposit facility rate is expected to be reduced to 2.75% from 3.00% currently.
Inflation in the Euro Area is expected to gradually ease, with forecasts of 2.1% in 2025 and 1.9% in 2026.
Core CPI inflation is also expected to ease, with a medium-term target of 2%.
Market players will be closely watching ECB President Christine Lagarde’s press conference for any hints regarding future interest rate trajectory.
In terms of macro data, Euro Area’s preliminary GDP growth report for Q4 will also be on traders’ radar.
Meanwhile, the latest data out of Switzerland showed the country’s trade surplus had narrowed to CHF 4.3 billion in December from a revised up CHF 4.6 billion surplus in November.
The EUR/CHF currency pair was last inching down 0.03% to trade at 0.9442.
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