EUR/USD rides out ECB rate cut

Yesterday ahead of the ECB decision, the question as to whether an envisaged and much expected ECB rate cut was priced into the EUR/USD at 1.10 was priced in. Well, as you can see from all that has transpired since, it certainly was. So, the EUR/USD eventually rose and once that rise pushed above 1.10555 yesterday afternoon, it has not looked back. The EUR/USD closed in the US last night at 1.1074. It has reached a high so far today at 1.1090. The gains have been been somewhat stunted though, by downside in the EUR/JPY and EUR/GBP since this time yesterday. That has certainly provided a headwind for the EUR/USD, notwithstanding the lower dollar since this time yesterday morning. However, all the while above 1.1055 on a daily closing basis there is potential for more upside in the short term, but beyond that, it is the Fed and what they deliver next week that will surely matter more than anything. The EUR/USD is currently trading at 1.1077