According to Jin Shi data reports, ING Bank stated that the euro to US dollar exchange rate has fallen to a low not seen in four and a half months, and the impact of interest rate spreads makes it difficult for the euro to recover. Analyst Chris Turner pointed out that the short-term interest rate spread between the eurozone and the US is unusually large, which is advantageous for the dollar.
Turner stated that the European Central Bank may need to support the eurozone economy through further interest rate cuts, expecting a 50 basis point cut in December. Germany's fiscal situation is unlikely to improve before the federal elections.
He also mentioned that only position adjustments may drive the euro stronger this week, but the increase will be limited.