The major pairs traded in wide ranges in recent trade without being able to move too far as the ECB rate decision to stay on hold are absorbed, and the U.K. general elections get underway.
The main focus of attention on Thursday is the reaction to the ECB Press Conference, which is as important as any that has come before.
The ECB Press Conference comes as further rumors appear that Greece will default, that Portugal and Spain are the next in line to be downgraded and would lead to the split of the European Union.
The Press Conference will be dominated by these themes, which in turn, will have strong effects on the market due to the feasible political and macroeconomic implications.
The Eur had been the weakest major currency over the last few months of trading, with this weakness quickly transforming into a plague for the currency market.
The long list of problems in Europe have affected global investor sentiment, and now the Usd is gaining ground against the entire currency market.
The Eur/Usd is trading at the lowest value in a year, Gbp/Usd at one-month low, Aud/Usd reached a two-month low earlier in the day, Usd/Cad reached a two-month high, while Usd/Chf recently hit a one year high.
The current week of trading has been one of the most active of the last few months, and considering that, on top of the ECB Press Conference there are other important reports scheduled in the upcoming sessions, there is plenty of volatility left in the market.
In addition, the Non-farm Payroll numbers will hit the newswires on Friday morning, adding to the explosive nature of this market.
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