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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.