Trading in EUR/USD is very quiet this morning, the market effectively on hold awaiting the ECB rate decision. The general consensus is that the bank will cut rates 50 bps. There is however the possibility they’ll be more aggressive and cut 75 bps, or maybe even signal a move to quantitative ease. The main danger for the euro is the latter of these three possibilities.
EUR/USD sits at 1.3260. Sources note sell orders lying up at 1.3330/35, with buy stops said to be gathering up at 1.3345/50.
