According to reports from Jin10 data, strategists at ING say that the money market expects the interest rate cuts in the Eurozone to exceed those in the US and the UK. This divergence has notably accelerated since Trump won the election.
According to data from the London Stock Exchange Group, the market expects a 77% probability that the European Central Bank will cut rates by 25 basis points in December, and a 23% probability of a 50 basis point cut.
Strategists point out that the purchasing managers' survey results released on Friday may be key to unlocking the puzzle, increasing the likelihood of a larger interest rate cut by the European Central Bank.
