The Euro Erases The Rate Cut

In theory rate cuts weaken currencies, since lower interest rates mean less reason to hold the currency, etc.

But in reality, with the euro, it’s all about growth and survival and risk. When things are good, and people see a better chance of the euro surviving, the euro seems to do well.

And so we’re not surprised that the euro is now higher than it was pre-rate cut eventhough yes, rates are lower.

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