Bloomberg News reports that economists are increasingly counting on the European Central Bank to cut interest rates on Thursday, with Deutsche Bank AG and JPMorgan Chase & Co. joining colleagues at HSBC Holdings Plc and Oxford Economics in predicting reductions. Key paragraphs ECB President Christine Lagarde “will be aware that her first big policy decision will shape perceptions of her approach, and therefore it now makes sense to err on the side of a bigger response, given the deteriorating backdrop,” Greg Fuzesi, an economist at JPMorgan in London, said in a note to clients on Monday. The ECB holds a scheduled policy meeting in Frankfurt this week, and investors expect a 10 basis point rate cut to the deposit rate, though economists still are divided if the Governing Council will act. Some are also predicting bond purchases will be boosted and a measure to direct liquidity to struggling small firms looks likely. FX implications The focus is on the US dollar and euro. The euro rallied to just shy of the 1.15 handle overnight on the back of the crash in US yields and various weekend news that fuelled prospects of further easing from the Federal Reserve. Should the ECB cut rates and given the drop in global oil prices, the dollar could find some support as the Fed would be pressured to do less – potentially weighing on the euro. DXY: It may only be a matter of time when US dollars are back by popular demand FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Itlay PM Conte: Adopting even tougher measures to combat coronavirus – Reuters news FX Street 3 years Bloomberg News reports that economists are increasingly counting on the European Central Bank to cut interest rates on Thursday, with Deutsche Bank AG and JPMorgan Chase & Co. joining colleagues at HSBC Holdings Plc and Oxford Economics in predicting reductions. Key paragraphs ECB President Christine Lagarde “will be aware that her first big policy decision will shape perceptions of her approach, and therefore it now makes sense to err on the side of a bigger response, given the deteriorating backdrop,” Greg Fuzesi, an economist at JPMorgan in London, said in a note to clients on Monday. The ECB holds a… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.