Traders position defensively as the ECB prepares to raise rates by 25 bps to 2.25% with potential downgrades to growth forecasts.
EUR/USD trades near 1.1530, reflecting downside risks ahead of the European Central Bank’s expected 25 bps rate hike to 2.25%. The move follows market caution over potential downgrades to the ECB’s economic projections.
The ECB’s last rate decision in July saw a 25 bps increase, bringing the deposit rate to 2.00%. Analysts anticipate a similar hike this week, though concerns over slowing growth may weigh on the euro.
No immediate market reaction was detailed, but defensive positioning suggests traders are bracing for a cautious tone from the central bank.