EUR/USD – Steady as Rate Cut Speculation Grows

EUR/USD is steady in Tuesday trading, as the pair continues to trade in the high-1.30 range in the European session. There was grim news to greet the markets as the Eurozone Unemployment Rate hit another record, fuelling further speculation that the ECB may take action and lower interest rates later this week. German numbers were mixed, as Unemployment Change came in higher than expected, while Consumer Climate beat the estimate. In the US, today's key event is CB Consumer Climate. The markets are expecting a turnaround after last month's disappointing release.

Will we see a rate cut from the ECB later this week? The Eurozone continues to stagnate with poor releases, highlighted by another record high for Eurozone Unemployment Rate, which edged to 12.1%, up from 12%. Speculation that the ECB will take action and lower rates is growing. Goldman Sachs released a statement on Thursday, stating that it expects a 0.25% cut when the ECB meets this week. The...