Euro Climbs, ECB Predicted to Leave Interest Rates Steady
A report last week of near-absent inflation in the euro zone led investors to speculate that the European Central Bank (ECB) would issue an interest rate cut this Thursday. However, unexpectedly strong German industry orders, released today, make that seem less likely. Some action to soften the euro is now expected to take place at the ECB’s December meeting. “The strength of the euro this year has already started offsetting the periphery’s competitiveness gains, which the region achieved during a painful adjustment in recent years,” said Ruben Segura-Cayuela, European economist at Bank of America Merrill Lynch in London.