Euro Rally Catches Bessent’s Eye as Bets for ECB Rate Cuts Grow

The euro’s rally is getting the attention of officials on both sides of the Atlantic, fueling expectations for deeper interest-rate reductions by the European Central Bank as the gains show little sign of slowing.

JPMorgan Chase & Co., BNP Paribas SA and Danske Bank A/S predict one euro will buy $1.20 or even more by year-end — a sharp departure from the calls for parity from some analysts three months ago. Traders have ratcheted up bets on ECB easing this year by about half a percentage point this month alone. President Christine Lagarde called the gains “counterintuitive,” and even US Treasury Secretary Scott Bessent weighed in on Monday, predicting more cuts to tame the euro’s strength.