The recent slew of negative U.S. economic news has surprisingly been ignored by the market. Thursday’s positive move by the ECB may be the start of a shift back to the Euro especially if the U.S. Non-Farm Payroll number on Friday turns out worse than expected. For months traders have been favoring the Dollar because of the Fed’s proactive moves towards solving the U.S. recession, this time it looks like the ECB has gained the upper-hand.

The European Central Bank cut its key interest rate by 75 basis points on Thursday. This action was the largest single day cut by the ECB since it began ten years ago. The initial reaction to the move put pressure on the Euro as traders had been pricing in the possibility of 100 basis point cut right up to the announcement.

Traders may begin to realize that the cut was aggressive enough to provide hope that the Euro Zone would pull out of its recession more quickly than expected. Investors could begin to aggressively buy the EUR USD on expectations the Dollar may weaken as the market begins to price in a 75 basis point cut by the Fed on December 16.