Hours to Go: Will ECB Cut Rates?

Hours to Go: Will ECB Cut Rates?

The euro zone economy flashed modest signs of life earlier this week, with a series of indicators suggesting tepid but still growing activity for a region that has narrowly avoided recession for over a year.

However, the numbers are possibly unlikely to deter the European Central Bank from moving forward with a rate cut on Friday, a decision that markets have nearly fully priced in as the countdown enters its final 24 hours.

Ahead of the decision, the EUR/USD is trading at its lowest since August 2, breaking below its 20-, 50-, 100-, and 200-day exponential moving averages. The key question: will the ECB’s rate cut provide much-needed support to the euro, or will sellers attempt to erase the gains from the August 2nd rally?