Euro Under Pressure On Rate Outlook
The euro is under renewed pressure today, just a day after the single currency's biggest ever one-day fall against sterling Monday.
The European Union's statistics office Eurostat said inflation in the 15 countries using the euro in December was up just 1.6 percent on a year earlier. That was down from 2.1 percent in November and well below the ECB's target of just under 2 percent.
Inflation could now possibly be close to zero in the spring, analysts are saying, piling the pressure on the ECB to slash rates in the coming months by a further 150 basis points to 1%.
The ECB meets to discuss rates next week. Markets have largely priced in a 50 basis point cut, with some investors betting on a 75 basis point move after the last such reduction in December.
The pound currently stands around 1.09 against the euro.
The European Union's statistics office Eurostat said inflation in the 15 countries using the euro in December was up just 1.6 percent on a year earlier. That was down from 2.1 percent in November and well below the ECB's target of just under 2 percent.
Inflation could now possibly be close to zero in the spring, analysts are saying, piling the pressure on the ECB to slash rates in the coming months by a further 150 basis points to 1%.
The ECB meets to discuss rates next week. Markets have largely priced in a 50 basis point cut, with some investors betting on a 75 basis point move after the last such reduction in December.
The pound currently stands around 1.09 against the euro.