Possible Interest Rate Cut Weighs on EUR/USD

The EUR/USD broke sharply after the Euro Zone unemployment rate rose to a record 11.9%. This report indicates that the region’s recession is deepening. The market broke through the recent bottom at 1.3018, triggering an acceleration to the downside through the low of the year at 1.2997. Another sign of weakness was the drop in European inflation to 1.8% in February. This is the lowest level since September 2010.

Speculation is building that the European Central Bank will have to cut interest rates in order to stimulate the economy.Continue Reading....