BUZZ-COMMENT-Fed-ECB contrast might deflate EUR/USD to 1.03
Jan 24 (Reuters) - The euro could be riding for a fall against the dollar if the European Central Bank delivers a more dovish than expected interest rate cut on Jan. 30 - especially if it comes hot-on-the-heels of a hawkish hold from the Federal Reserve.
The Fed is universally expected to keep rates unchanged on Jan. 29, despite U.S. President Donald Trump's demand for an immediate cut.
A hawkish Fed hold would increase the probability of another unchanged rate decision from the U.S. central bank in March, 13 days after the ECB looks likely to reduce rates again.
It could also deflate EUR/USD towards 1.0300 - a level at which it was trading a few hours before Trump 2.0 got under way on Monday.
EUR/USD scaled a five-week EBS peak of 1.0471 on Friday, courtesy of dollar selling after Trump said he would rather not use tariffs against China.
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