EUR/USD depreciates as the ECB could deliver a 25 basis cut on Main Refinancing Operations and the Deposit Facility.
The US Dollar Index hovers near its two-month high of 103.35, reached on Monday.
Atlanta Fed President Raphael Bostic anticipates just one more interest rate cut of 25 basis points in 2024.
EUR/USD holds its position after a four-day losing streak, trading around 1.0890 during the Asian session on Wednesday. The Euro may face downward pressure as the European Central Bank (ECB) is widely anticipated to implement a 25 basis point cut on both the Main Refinancing Operations and the Deposit Facility Rate during Thursday’s policy meeting.
Traders are expected to closely watch the Harmonized Index of Consumer Prices (HICP) data from the Eurozone, set to be released on Thursday, ahead of the European Central Bank (ECB) policy decision.
Additionally, the ECB's Monetary Policy Statement and President Christine Lagarde's speech during the post-meeting press conference will be key events of interest, as they may provide insights into the bank's monetary policy direction.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against other six major currencies, maintains its position around its two-month high of 103.35, recorded on Monday. Last week’s strong jobs and inflation data have reduced expectations for aggressive easing by the Federal Reserve (Fed) in 2024.
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