Euro Nears Four-Week Low Ahead of Anticipated ECB Rate Cut
The euro hovers near a four-week low versus the dollar as investors anticipate a 25-bps interest rate cut from the European Central Bank. Traders are keenly observing policy signals for further rate cuts amidst sluggish economic growth and cooling inflation in the Eurozone.
The euro is hovering near a four-week low against the dollar, ahead of a widely anticipated interest rate cut by the European Central Bank (ECB). The euro, last seen up 0.1% at $1.1022, remains close to its weakest level since Aug. 16.
The ECB is almost certain to cut interest rates by 25 basis points later today, following a reduction to 3.75% in June. The decision will be followed by ECB President Christine Lagarde's news conference, where the focus will shift to further rate cuts amidst lackluster economic growth and cooling inflation.
Market expectations suggest that the ECB is likely to continue rate cuts, with a 64 bps reduction expected by year-end. Trader attention is also on the U.S. Federal Reserve, which is expected to cut rates next week for the first time in four years.
(With inputs from agencies.)
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