EUR/USD depreciates as traders adopt caution ahead of US Nonfarm Payrolls scheduled for Friday. The US Dollar rebounds as market caution persists amid uncertainty ahead of the upcoming US presidential election. The unexpected rise in Eurozone inflation has reinforced expectations that the ECB will adopt a cautious approach to rate cuts. This downside is attributed to the improved US Dollar due to ongoing market caution amid uncertainty leading up to the upcoming US presidential election.
EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY , EUR/GBP and EUR/AUD . What is the ECB and how does it impact the Euro? The European Central Bank in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth.