EURUSD hits lowest level in 4 weeks ahead of ECB meeting

• EURUSD – lowest in 4 weeks
   
• Bulls aim to stabilize above 1.10000 level
   
• ECB expected to cut rates by 25 basis points
   
• German CPI hits 2% target, lowest in 3 years
   
• US inflation data may limit dollar appreciation

The major currency pair has hit its lowest level in the past 4 weeks (~1.10021).

EURUSD bulls are attempting to stabilise just above the 1.10000 level ahead of today's key macroeconomic event from the Eurozone.

The European Central Bank is widely expected to cut interest rates by 25 basis points due to cooling inflation in the Eurozone.

Recently, the German CPI fell to its lowest level in over three years, hitting the ECB's 2% target.
 

This could weaken the Euro and affect the EUR/USD pair, especially if the US Dollar strengthens slightly.

However, the US CPI report showed easing headline prices but sticky underlying inflation, which may prevent a major rate cut by the Federal Reserve.

Despite this, markets are pricing in a 25bp rate cut at the next FOMC meeting, which may limit the appreciation of the US dollar.

This may support the EUR/USD ahead of key central bank events.

Investors may look to the ECB's updated economic projections and the release of the US Producer Price Index for fresh trading opportunities.