Fed Turns Dovish, Will ECB Follow Tomorrow? - Forex News by FX Leaders

Fed Turns Dovish, Will ECB Follow Tomorrow?

Posted Wednesday, June 5, 2019 by
Arslan Butt • 1 min read

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

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments