ECB Rate Cut Expectations Weigh on Euro

  March 04th, 2013 at 15:26
Counting 50-euro billsOnce again, the eurozone outlook is in question. Concerns about global economic growth, as well as worries about what’s next for Italy and the rest of the eurozone, have some speculating that the European Central Bank will cut interest rates.

Even at the height of the global financial crisis and subsequent recession, the ECB proved itself reluctant to cut interest rates, moving very deliberately. Now, though, there is speculation that the ECB will have little choice but to cut the eurozone benchmark in order to prompt economic growth in the 17-nation currency region.


Right now, political stalemate in Italy is causing concern, and there are worries that the eurozone recession will continue without a little more help from monetary policy leaders. On top of that, there are concerns about the wider global economy. China has announced plans to more tightly control the property sector, and that has many concerned about a worldwide slowdown.

Between lack of progress in Italy, worries about the eurozone’s continuing recession, and speculation about the global economy, it is little surprise that high beta currencies like the euro are struggling a bit.

At 15:23 GTM EUR/USD is down to 1.3006 from the open at 1.3013. EUR/GBP is down to 0.8637 from the open at 0.8651. EUR/JPY is down to 121.4470 from the open at 121.8700.
ECB Rate Cut Expectations Weigh on Euro ECB Rate Cut Expectations Weigh on Euro Reviewed by Sopheap Chhin on 11:27:00 PM Rating: 5

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