Euro at 2-Month Low as ECB Meeting Approaches
The euro weakened to $1.0932, a two-month low, as monetary policies diverge between the European Central Bank (ECB) and the US Federal Reserve.
The ECB is expected to cut its deposit rate by 25 bps on Thursday, following reductions in September and June. Traders anticipate more cuts at every meeting through March, reflecting the ECB's response to slowing inflation, which dropped to 1.8% in the Eurozone, the lowest since April 2021. In contrast, stronger-than-expected US jobs and inflation data have reduced bets on further significant rate cuts by the Federal Reserve, maintaining pressure on the Euro.
Source : Trading Economics