German Central Banker Spurs Rate Cut Possibility

The euro had its biggest one-day fall in almost a year on Wednesday after a prominent European Central Bank (ECB) official said there was a possibility of an interest rate cut in the euro zone and analysts tell CNBC there’s plenty of reason to take him seriously.

The ECB could lower interest rates further if the economic data warrant it, ECB Governing Council member and Bundesbank President Jens Weidmann was quoted by the Wall Street Journal as saying on Wednesday in remarks that knocked the euro more than 1 percent lower to $1.30.

The single currency was only a touch firmer in early Asia trade on Thursday, nursing its heavy overnight falls.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza