ECB to consider large cut
In Europe, EUR/USD edged marginally higher to 1.0833, on track for a weekly loss of more than 0.3%.
The German Ifo business climate rose slightly in October, data showed Friday, but sentiment remains weak after eurozone business activity stalled again this month.
The ECB has already cut rates three times this year, each time by 25 basis points, but expectations are growing that the central bank will consider a larger reduction at its next meeting.
“Bundesbank president Joachim Nagel was asked on two separate occasions during his stay in Washington whether he would consider a 50bp cut in December, and both times, he refrained from explicitly pushing back,” said ING. “Nagel is one of the most hawkish members of the Governing Council and would have probably answered with a clearer ‘no’ only a month ago.”
GBP/USD traded largely unchanged at 1.2972, heading for a weekly loss of around 0.5%, but has also edged away from a two-month low seen on Wednesday.
Bank of England Governor Andrew Bailey speaks on Saturday in Washington, and traders will be looking for any comments on likely future policy after he warned earlier this month that the central bank could become “a bit more activist on rate cuts” if there’s further good news on inflation. (Cay)
Source: Investing.com
