ECB decision to cut interest rate may weaken the euro

The ECB can already see how diverging policy prospects have begun to impact global markets. Picture: Hannelore Foerster/Bloomberg/Getty

The European Central Bank (ECB) could open the door to a weaker euro on Thursday as its first interest-rate cut of the cycle puts the region on a divergent policy path from the US.

With a quarter-point reduction all but certain, officials will finally embrace a widening in the difference between borrowing costs on either side of the Atlantic, the implications of which they’ve discussed for months.