Forex Trading Forecast: Rate Cuts This Week

Interest rates expected to drop in euro zone, BritainThe forex trading forecast this week calls for interest rate cuts. This week, the European Central Bank and the Bank of England are expected to make interest rate decisions. The general consensus is that both the ECB and the BoE will cut rates.

Up until a couple of months ago, inflation had been seen as too great a concern in both the euro zone and in Britain. Now, though, that worry is mostly over as recession sets in. Rate cuts are expected to be rather dramatic — as much as 100 basis points in the case of the Bank of England.

Also, the central banks in Australia and New Zealand are expected to ease monetary policy.

See Also

• Forex Trading on the Currency Market
  World currencies in FX trading

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