ECB

Learn how the Fed, ECB, and BOJ impact forex markets. Get answers to FAQs on interest rates, currency trends, and trading strategies in this must-read guide.

EURUSD Analysis: Following a double top formation at the 1.120 resistance, EURUSD reached the target, pressured by a strong dollar and dovish ECB. Will the decline continue?

The EUR/USD held near 1.0850, near its lowest level since early August. The other euro crosses were mixed. However, the EUR/JPY forecast hadn’t quite turned bearish yet as it held above a key support and traders watched whether the USD/JPY pair would hold its latest attempt to break the 150.00 in response to a series of US data beats.

EUR/USD bears have taken a swing and the pair is now working on its 13th red day in the past 14. And before that, bulls were persistently pushing into the 1.1200 handle so the contrast is stark. The question now is how dovish the ECB sounds at tomorrow’s widely-expected rate cut.

The European Central Bank (ECB) is expected to announce a 0.25% rate cut this week, bringing the key rate down to 3.25%. This will mark the third reduction this year, followed by China's GDP data on Friday morning.

Market Update: Key Events, Movements, and Expectations Over the past 24 hours, the financial markets have witnessed significant movements, with both the Dow and S&P 500 reaching new record highs. This surge has been fuelled by strong momentum at the start of the US earnings season

EURUSD Forecast: In addition to the strength of the dollar between haven factors and moderated expectations of monetary easing, dovish expectations surrounding the ECB’s upcoming monetary policy decision are putting additional pressures on the Euro.

Conditions for euro bears have been ripe for the past three weeks with renewed bets of an ECB cut alongside scaled-back bets of ECB easing. But given the depth of the selloff on EUR/USD, it could be vulnerable to a bounce unless a dovish cut is delivered.

Everyone has been dunking on the euro and buying US dollars recently, explaining why EUR/USD has continued to sink. But with sentiment towards the common currency so dire, it won’t take much to spark a short squeeze. With major risk events approaching, the temptation to square up short trades may prove too appealing for some.

EUR/USD may consolidate ahead of the European Central Bank (ECB) interest rate decision on October 17 as the exchange rate holds above the weekly low (1.0900).

Last week, the European Central Bank (ECB) made a significant move to cut interest rates for the second time this year, after the first cut was initiated in the June meeting. So why is the ZEW Economic Sentiment and Current Conditions now so important?