EUR/USD will hit its longest weekly decline in eight months, as market participants increasingly expect the ECB to cut interest rates by 50 basis points in December. The euro will fall for the fourth week in a row, the longest weekly decline since February, to around $1.08. Signs of economic weakness in the Eurozone increase the possibility that the ECB will relax its policy more drastically, while at the same time the Federal Reserve may slow down the pace of interest rate cuts. The upcoming US presidential election is also putting pressure on the euro, given the risk of Trump winning and imposing high trade tariffs on European countries. Goldman Sachs said this situation would boost the dollar and cause the euro to fall to parity. The US dollar has recorded its biggest monthly gain in two years. Traders are betting on a 40% chance that the ECB will cut interest rates by 50 basis points at its next meeting in December, yet just 10 days ago, this risk was completely unaccounted for. Meanwhile, the possibility that the Federal Reserve will cut interest rates by another 50 basis points has weakened.

Zhitongcaijing · 10/25 10:41
EUR/USD will hit its longest weekly decline in eight months, as market participants increasingly expect the ECB to cut interest rates by 50 basis points in December. The euro will fall for the fourth week in a row, the longest weekly decline since February, to around $1.08. Signs of economic weakness in the Eurozone increase the possibility that the ECB will relax its policy more drastically, while at the same time the Federal Reserve may slow down the pace of interest rate cuts. The upcoming US presidential election is also putting pressure on the euro, given the risk of Trump winning and imposing high trade tariffs on European countries. Goldman Sachs said this situation would boost the dollar and cause the euro to fall to parity. The US dollar has recorded its biggest monthly gain in two years. Traders are betting on a 40% chance that the ECB will cut interest rates by 50 basis points at its next meeting in December, yet just 10 days ago, this risk was completely unaccounted for. Meanwhile, the possibility that the Federal Reserve will cut interest rates by another 50 basis points has weakened.