EUR/USD withered further on Wednesday, sagging below 1.0900.
ECB rate cut looms large around the corner, broadly expected to trim rates 25 bps.
Final EU inflation figures are unlikely to move the needle on Thursday.
EUR/USD is in freefall, plummeting to multi-week lows as the Euro continues to crumple ahead of the European Central Bank’s (ECB) upcoming rate call on Thursday. The ECB is widely expected to trim interest rates by a quarter of a percent, or 25 bps.
All eyes will be on the ECB during Thursday’s European market session. The ECB is widely expected to trim its Main Refinancing Operations Rate by 25 bps to 3.4% from 3.65%, with the ECB’s Rate on Deposit Facility expected to take a matching 25 bps trim to 3.25% from 3.5%. With the ECB broadly expected to reduce rates in the face of a lopsided and cooling pan-EU economy, the Euro is running out of room quickly and can be expected to continue declining in the near-term.
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