According to Jinshi Data, ING Group said that the euro fell to a four-and-a-half-month low against the U.S. dollar, and the impact of interest rate differentials on the exchange rate made it difficult for the euro to recover. Analyst Chris Turner pointed out that the short-term interest rate differential between the euro zone and the United States is very different, which is beneficial to the U.S. dollar.
Turner said the ECB may need to support the euro zone economy with further rate cuts, with a 50 basis point cut expected in December. Germany's fiscal situation is unlikely to improve before the federal election.
He also mentioned that only position adjustments could drive the euro higher this week, but the gains would be limited.