EUR/USD continues to slump after ECB rate cut
EUR/USD continues to backslide following the European Central Bank’s (ECB) quarter-point rate trim early Thursday. A lack of bullish momentum has Fiber extending near-term losses, and the pair is down over 3.5% from late September’s peak bids just above 1.1200.
The ECB trimmed its reference rates exactly in-line with median market forecasts, delivering a 25 bps cut to its Rate on Deposit Facility and Main Refinancing Operations Rate, easing the reference rates to 3.25% and 3.4%, respectively.
As if the Euro didn’t have enough support as it is, Europe’s final Harmonized Index of Consumer Prices (HICP) inflation for the year ended September also declined more than expected, with the final print coming in at just 1.7% YoY compared to the expected 1.8%.
All that remains on the EU-centric economic data docket is Friday’s upcoming EU Leadership Summit, but the event is unlikely to spark much confidence in the Euro as policymakers grapple with a lopsided economy tilting toward a steeper slowdown despite insistence from leaders that it isn’t. (Cay)
Source: Fxstreet
