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EUR/USD not backing off after ECB rate cut

There is a good deal of confusion across the markets by the policy action from the ECB yesterday. The fact that the ECB cut interest rates at the same time as raising their 2024 and 2025 inflation outlook was noted here yesterday and it has seen many analysts questioning the move since. The view here is one of less ambiguity though and it seems to this trained eye that pressure from the European economic power house helped to deliver this- that can never be proved of course, but let us see the German data shortly to see if that endorses the reasons why the ECB might have made the move. That is due shortly at 6am GMT and covers the latest German industrial production data. Meantime, the EUR/USD is holding its ground just below the 1.09 handle as it waits to see what the US monthly jobs report has to offer later today. There will be plenty to add before and after that report is released. The EUR/USD is currently trading at 1.0892

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