EUR/USD Bullish After Fed Rate Cut Turns Traders Away from US Dollar - Forex News by FX Leaders
EUR/USD Bullish After Fed Rate Cut Turns Traders Away from US Dollar

EUR/USD Bullish After Fed Rate Cut Turns Traders Away from US Dollar

Posted Wednesday, March 4, 2020 by
Arslan Butt • 1 min read

The euro is trading steady after some bullishness against the US dollar a day after the Fed announced a surprise 0.50% rate cut to offset any potential impact of the coronavirus outbreak on the US economy. At the time of writing, EUR/USD is trading at around 1.115.

The Fed’s sudden decision prompted investors to flee away from the US dollar into other currencies, with the euro turning into one of the biggest gainers in the forex market. Despite the 0.50% rate cut, sentiments of additional rate cuts continue to weigh on the dollar and are supporting bullishness in EUR/USD for now.

Markets are also expecting a 90% likelihood of the ECB cutting interest rates within a week, but with rates already in the negative territory, such a decision is expected to have a muted impact on European markets and the currency. Over the past eight days, EUR/USD has risen nearly 4% higher.

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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.
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