Euro Warily Traded as ECB Meeting Looms

Barbara Zigah

By: Barbara Zigah

The common currency Euro remains steady as the European Central Bank is set to make what many believe will be its second consecutive interest rate cut later in the trading day. As reported at 12:55 p.m. (JST), the Euro was trading against the U.S. Dollar at $1.3401, dropping from an intraday high of $1.3428. Investors have been trading the EUR/USD pair cautiously ahead of the announcement; the broad view is that the ECB will reduce the current rates by 25 basis points, though there are also expectations out to a full 1% drop. The bank is also expected to make an announcement of additional, longer-term lending facilities to increase liquidity.

Once the announcement is made, the focus will resume on the E.U. summit, which is now largely viewed as a make-or-break one. Germany and France have laid bare their plans for tighter fiscal monitoring of the EMU nations and a treaty amendment will need to be ratified by all of the 27 member nations. Even given the urgency, some analysts believe that ratification will be difficult given that several of the non-EMU members are insisting on protections for their nations and have hinted that they would veto the plan if those protections for them were not included.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.