ECB in the pipe with the Euro back at its October low
The European Central Bank (ECB) decides on Thursday with EUR/USD a short way above a low it has hit twice, on October 14 and again on Wednesday. Wednesday's visit, just above 1.1100, followed five straight losing sessions.
The European Central Bank (ECB) has decided on Thursday, with the Euro (EUR) reaching its lowest point since October. This follows a series of five consecutive losing sessions, where the pair briefly surged above 1.1100, just two weeks ago. Since then, the EUR/USD has climbed to around 1.1150 and is set to make its first gain in six sessions.
Meanwhile, the Federal Reserve (Fed) voted 10-2 to maintain the status quo, with Fed Governor Christine Lagarde dissenting for the first time since joining the board in 2022. The upgrade to US growth prospects from "solid" to "strong" has increased the likelihood of a December Fed rate hike to about 81% from 75%. Fed Chair Jerome Powell indicated that he does not believe in forward guidance outside of a crisis, and market-set interest rates have been declining.
The ECB's decision at 13:15 GMT will impact the euro half of the EUR/USD rate gap, with the deposit rate expected to remain at 2.5%. ECB President Lagarde will take questions at 13:45 GMT, and Eurozone growth for the third quarter is forecast at 0.2% after 0.6%. US GDP is released on Thursday at 12:30 GMT, showing a 3.2% annualized rate after 2.2%.
The forecasts suggest accelerating growth on the US side and decelerating growth on the euro side within the same quarter.
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