Euro falls to a two-month low

Wed, 10/16/2024

by Ellie LeTu

Source: Financial Times

• Downward trend in Euro value

  • Down more than 2% this month, biggest drop in a year.

  • Recent data has made the US dollar more attractive.

    • Strong recent economic data (September Jobs Report).

    • The Fed expected to ease rates downwards more slowly.

• Faster interest rate cuts expected in Europe

  • Driven by weaker economic data out of the EU.

  • European Central Bank (ECB) is expected to make quarter point cuts at each of the next two meetings.

• Uncertainty around US election

  • Trump presidency expected to strengthen the US Dollar.

    • Driven by Trump’s pledge for strong tariffs on imports.

  • Harris presidency expected to maintain the status quo.