Investors are anticipating that the European Central Bank (ECB) will reduce its policy interest rate by 25 basis points (bps) at Thursday's policy meeting, given the lackluster economic data and a continued downward trend in inflation.
Additionally, the ECB’s monetary policy statement and remarks by President Christine Lagarde during the post-meeting press conference will provide crucial insights into the central bank’s future policy direction.
Meanwhile, investors expect the U.S. Federal Reserve to lower interest rates by a total of 125 bps next year, according to CME's FedWatch tool. As of now, there is a 94.1% probability of a 25 bps rate cut in November.
Source: Fxstreet