The euro has fallen to the lowest level since 2022

It has retreated to the lowest level in the last two years, as international market traders are betting that the European Central Bank should aggressively reduce them to support the eurozone economy. The common currency retreated more than 1% to $1,0335, at the lowest level since November 2022, after the current figures (22.11.2024) showed that business activity in the two largest economies of the eurozone, namely Germany and France, shrunk more than expected. The market-estimated chances of the ECB reducing interest rates by half a unit next month increased to over 50%, from about 15% on Thursday. “This report actually puts a 50-point decrease on the table,” said Matthew Landon, a strategic global market analyst at J.P. Morgan Private Bank, adding that the bets against the currency are the company’s “preferably short” transaction on the foreign exchange markets.