Hours to Go: Will ECB Cut Rates?
Hours to Go: Will ECB Cut Rates?
The euro zone economy flashed modest signs of life earlier this week, with a series of indicators suggesting tepid but still growing activity for a region that has narrowly avoided recession for over a year.
However, the numbers are possibly unlikely to deter the European Central Bank from moving forward with a rate cut on Friday, a decision that markets have nearly fully priced in as the countdown enters its final 24 hours.
Ahead of the decision, the EUR/USD is trading at its lowest since August 2, breaking below its 20-, 50-, 100-, and 200-day exponential moving averages. The key question: will the ECB’s rate cut provide much-needed support to the euro, or will sellers attempt to erase the gains from the August 2nd rally?
The euro zone economy flashed modest signs of life earlier this week, with a series of indicators suggesting tepid but still growing activity for a region that has narrowly avoided recession for over a year.
However, the numbers are possibly unlikely to deter the European Central Bank from moving forward with a rate cut on Friday, a decision that markets have nearly fully priced in as the countdown enters its final 24 hours.
Ahead of the decision, the EUR/USD is trading at its lowest since August 2, breaking below its 20-, 50-, 100-, and 200-day exponential moving averages. The key question: will the ECB’s rate cut provide much-needed support to the euro, or will sellers attempt to erase the gains from the August 2nd rally?
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