Euro Trading Bearish Over Increased Expectations of an ECB Rate Cut - Forex News by FX Leaders

Euro Trading Bearish Over Increased Expectations of an ECB Rate Cut

Posted Monday, September 9, 2019 by
Arslan Butt • 1 min read

On Monday, the Euro is trading bearish against the US dollar over increased expectations for the ECB to ease its monetary policy as the Eurozone economy continues to under-perform. At the time of writing, EUR/USD is trading at around 1.102.

The European Central Bank meeting is due to take place on Thursday and markets are widely expecting an announcement of easing monetary policies, just like the PBOC did last week. The US-China trade war continues to drag on and the weakness in the global economy is also expected to continue until trade tensions abate.

Interest rates in the Eurozone have been holding near zero for quite some time but the ECB could announce a rate cut in its upcoming meeting in a bid to boost the Eurozone economy. However, some economists have cautioned that a rate cut after over four years of low rates could end up doing more harm than good towards reviving the economy.

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
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments