⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Fed Turns Dovish, Will ECB Follow Tomorrow?

Rising trade tensions are increasing the likelihood of a rate cut by the Fed, causing the recent weakness in the US dollar. We recently saw the RBA cutting interest rates as well, from 1.50% to 1.25%.

The attention now turns to ECB, which is due to meet on Thursday. Economists are speculating that the European Central Bank will sound dovish and reflect the Fed’s recent outlook.

Given the recent weakness in inflation across Eurozone, there could be some interesting updates to watch out for from the ECB meeting. The central bank is expected to offer new loans to banks in a bid to maintain flow of credit in the economy.

For now, EUR/USD has improved slightly and is trading above 1.11 buoyed by the weakness in the USD. At the time of writing, this forex pair is trading at 1.1279.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
🔒 OPEN A TRADING ACCOUNT