The Euro began the week downward at $1.085, marking its fourth straight week of losses and hovering near its lowest point in two and a half months.
Euro weakens as ECB signals further rate cuts
Traders are bracing for further monetary easing from the European Central Bank (ECB), expecting another 25 basis point cut to the deposit rate in December.
50 bps possibility
However, there's a growing chance—around 30%—of a more substantial 50 basis point reduction. Last week, the ECB made its third rate cut of the year, pointing to improved inflation control but a deteriorating economic outlook for the eurozone. ECB President Christine Lagarde's comments signal a weaker economic forecast. This week's preliminary PMIs for the Eurozone will offer an early glimpse of the bloc's financial performance in October.
