Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, believes inaction from the ECB on Thursday could boost the EUR. "Further evidence of disinflationary pressures was already evident in Spanish and German CPI reports. The annual rate of headline inflation in Spain fell back into negative territory for the first time since the initial aftermath of the global financial crisis, while the annual rate of inflation in Germany also declined below 1.0%". "Low inflation is increasing pressure upon the ECB to ease monetary policy further, although without further policy action in the near-term it will act to lift euro-zone real yields and strengthen the euro."