Euro trading slightly Lower ahead of ECB Rate Decision

The Euro has returned some of its recent gains against the dollar tonight as market participants expect the European Central Bank to cut interest rates tomorrow (May 7) by 25 basis points from 1.25% to 1%.

The announcement will take place at 12:45GMT, in-which there is also a possibility the ECB will reveal  additional measures  to lower borrowing costs. If such measures will indeed be mentioned the Euro might suffer further selling pressure in the Forex market this week.

In addition, the safe haven Dollar and Yen have been trading slightly higher tonight after stocks around the world fell. However, this morning we are experiencing a recovery of  the British Pound and the Australian dollar led by better than expected fundamental reports earlier today ( UK: Services PMI 48.7   Australian: Retail Sales 2.2%).

The market will continue to focus on wall-street’s performance and the ECB rate announcement expectations in the next 24 hours.

Z.Georgi

Related posts:

1. Dollar slightly lower ahead of expected rate cuts Share Two interest rate announcements  will take place  today, First...
2. EURUSD trading at 1.3 ahead of tomorrow’s rate decision Share Obama’s victory yesterday was most expected by the markets,...
3. ECB lower than expected rate cut boosts Euro Share Instead of the expected 0.5 basis points slash in...
4. Trading the Breaks Ahead of Reserve Bank of Australia’s Rate Decision 10:30 PM EDT —- AUD/USD Share [caption id="attachment_9688" align="aligncenter" width="499" caption="aud/usd setup"][/caption] Looking at an...
5. Dollar drops ahead of FED rate decision Share The Dollar continues to fall across the board as...