The Euro continued its downward trajectory against the British Pound following the European Central Bank’s decision to reduce its key interest rates by 25 basis points. This move, which came as no surprise to market observers, reflects the ECB’s growing concern over the Eurozone’s economic outlook.
The Pound, on the other hand, has found some support after a sharp decline triggered by weaker-than-expected UK inflation data. The slowing pace of price increases has raised expectations that the Bank of England may also cut interest rates in the coming months.
Key Points:
- ECB Rate Cut: The European Central Bank lowered its key interest rates by 25 basis points.
- Euro Weakness: The Euro continued to depreciate against the British Pound.
- UK Inflation: UK inflation data showed a slowdown in price pressures.
- BoE Rate Cut Expectations: Market participants anticipate the Bank of England may also reduce interest rates.