Natixis: December policy expectations of the European Central Bank and the Fed are crucial to the euro

According to Kit Juckes, a forex strategist at Societe Generale, the potential pricing changes in the market for the European Central Bank and the Federal Reserve’s December policy decisions may determine the future trend of the euro to the US dollar exchange rate in the next few days. If ECB President Lagarde pours cold water on the idea of a rate cut in December at the meeting on Thursday, the euro should at least get a temporary boost. Given the market’s expectation that the European Central Bank will cut interest rates by 25 basis points at its next four meetings, the potential for the euro to pump is greater than the potential for it to fall.