According to Jinshi, ING analyst Francesco Pesole believes that the euro faces the risk of weakening as the currency market has almost fully digested the ECB's October rate cut. Although the possibility of a rate cut may be smaller than the market suggests, high service sector inflation and rising oil prices may lead the ECB to raise its inflation expectations.

He said the market is unlikely to easily give up its bet on a rate cut in October, the interest rate gap between the US dollar and the euro is large, and the euro will still face some pressure against the US dollar in the short term.