"Nothing new is expected from the European Central Bank - with policymakers likely keeping the rate at the current 0.75%," points Lee. "Potential questioning will emerge in the post decision press conference over the current condition of relatively higher inflation – which still rests just shy of the ECB’s target band – as well as the state of lower debt costs for both Spain and Italy as it pertains to potential OMT execution."
The EUR/USD is currently trading at 1.3000, 0.20% above Friday's opening price action and 25 pips above Monday's opening price at 1.2975. Lee believes that the "psychological resistance at 1.3150 remains the lone barrier to break higher in the EURUSD pair."
An "upside penetration of the figure would shift focus towards a test of 1.3200," concludes Richard Lee.