EUR/USD Retreats Ahead of ECB Rate Cut

EUR/USD Plummets Ahead of ECB Rate Cut

The Euro is under significant pressure, pushing EUR/USD to multi-week lows as investors anticipate a rate cut from the European Central Bank (ECB). The ECB is widely expected to reduce its interest rates by 25 basis points on Thursday, a move that could further weaken the Euro.

All eyes will be on the ECB during the European market session. The central bank is poised to lower its Main Refinancing Operations Rate and Deposit Facility Rate by 25 basis points each. With the Eurozone economy facing headwinds, the ECB’s rate cut is expected to contribute to a continued decline in the Euro.

On the US side, the focus will be on Thursday’s Retail Sales data. Markets are anticipating a slight improvement in US consumer spending compared to the previous month.

EUR/USD Price Outlook

EUR/USD remains firmly bearish, breaking below the crucial 200-day Exponential Moving Average (EMA) at 1.0900. If the downward momentum persists, the pair could further decline towards the 1.0800 level.

The Euro has been under pressure for several weeks, and a rate cut from the ECB is likely to exacerbate the selling pressure.