The EUR/USD pair experienced a decline, approaching 1.1350 in anticipation of the European Central Bank’s (ECB) monetary policy announcement. A 25 basis point (bps) interest rate reduction is widely expected, marking the sixth consecutive decrease. Concurrently, progress in US-Japan trade negotiations has offered support to the US Dollar. The ECB’s decision, scheduled for 12:15 GMT, is projected to lower the Deposit Facility Rate and the Main Refinancing Operations Rate to 2.25% and 2.4%, respectively. Market participants will closely monitor ECB President Christine Lagarde’s subsequent press conference for insights into future monetary policy direction and the Eurozone’s economic trajectory. Particular attention will be paid to whether Lagarde maintains her assessment of interest rates as restrictive, which could signal further easing measures later in the year.
