Market Outlook: ECB's Rate Cuts Surpassing the Fed Could Further Weaken the Euro

Ipek Ozkardeskaya from Swissquote Bank stated that the euro might depreciate further against the dollar after some European Central Bank officials indicated that the pace of rate cuts might accelerate. Ozkardeskaya noted, "It seems likely that the Fed will cut interest rates less than previously expected." ECB's Mario Centeno mentioned that the central bank could lower interest rates by an additional 50 basis points if the labor market weakens and inflation decreases. Olli Rehn commented on the weakening growth outlook for the Eurozone, and Francois Villeroy warned about the risk of reducing interest rates too slowly. According to FactSet, the euro hit a 16-week low of $1.0761 on Wednesday, last trading at $1.07954.