While markets believe an interest rate cut by the European Central Bank is unlikely at Thursday’s meeting, investors will be watching for hints that policymakers are worried this year’s big rise in the euro will push meaningfully down on inflation.

The ECB signalled last month — as it reduced its main rate by one quarter of a percentage point to 2 per cent — that it was nearing the end of its easing cycle, and traders in swaps markets are putting a more than 90 per cent chance on a hold this time around.

The single currency has risen 12 per cent against the dollar this year, and at the central bank’s recent annual conference in Sintra, Portugal, one rate-setter said it should “try to avoid any sort of overshooting” in the currency. The euro softened after the remarks.