Market Outlook: Expectations of a Significant Rate Cut by the ECB Weaken the Euro

Foreks - Swissquote Bank analyst Ipek Ozkardeskaya stated that the Euro has fallen due to expectations that the European Central Bank will need to significantly reduce interest rates because of weak economic growth in Europe and political turmoil. Ozkardeskaya argued that even the "heavyweights" announced in the new cabinet in France will not be able to persuade a divided government to agree on a budget deal aimed at reducing the French budget deficit. The Euro decreased by 0.1% to 1.0394 dollars.