Euro Set for Deeper Decline as Market Sees More ECB Cuts
- Currency falls to lowest in nearly two weeks on inflation data
- Trade tariffs could mean ECB needs to make deeper reductions
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Traders are ramping up bets for a deeper divergence between European and US interest rates, setting the euro on a clear path for further weakness.
The currency fell to to its lowest in nearly two weeks as soft inflation readings from Germany and France strengthened the argument that the European Central Bank will continue monetary easing this year following a rate cut on Thursday. The Federal Reserve kept rates on hold on Wednesday and hinted at a pause, ensuring the dollar remains a much more attractive currency.