Euro at 28 months low

The euro has now reached its lowest level in 28 months against the US dollar, as investors rely on the European Central Bank to approve further rate cuts.

The money markets have raised their expectations for a 20-basis-point cut in interest rates by the European Central Bank at its meeting next week, reaching 0.83%. Interest rates are currently at -0.4%.

The European Central Bank is also almost committed to proposing a new stimulus package including further easing due to slowing economic growth and the fact that the German manufacturing sector is in recession.

At the last exchange, the euro fell 0.3% to settle at 1.0937 USD, falling to 1.09305 USD, its lowest level since mid-May 2017.

Source: Reuters

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