The race to cut interest rates in 2024 could benefit the euro
- Euro could see more gains in 2024
- ECB expected to cut rates in the third quarter of 2024
- Eurozone inflation close to the ECB’s target
- Weakness in the European economy points to an ECB rate cut
- Fed expected to embark on a larger easing cycle than the ECB
- ING forecasts the euro to reach $1.15 by the end of 2024
The euro could see more gains in 2024 as the European Central Bank (ECB) prepares for a rate cut. The ECB is expected to cut rates in the third quarter of 2024, following the Federal Reserve’s anticipated rate cut in March. The eurozone’s inflation is close to the ECB’s target, and the weakness in the European economy further supports the case for an ECB rate cut. Meanwhile, the Fed is expected to embark on a larger easing cycle than the ECB, which could be negative for the dollar and supportive for the euro. ING forecasts the euro to reach $1.15 by the end of 2024, a 4% jump from its 2023 year-end price.
Public Companies: ING (ING), Tullett Prebon (N/A), Bank of England (N/A), Argentex Group (N/A)
Private Companies: FactSet
Key People: Chris Turner (Global Head of Markets at ING), Christine Lagarde (ECB President), Joe Tuckey (Head of Foreign-Exchange Analysis at Argentex Group)
Factuality Level: 7
Justification: The article provides information about the race to cut interest rates in 2024 and the potential impact on global currencies. It includes data on the euro’s performance against the dollar in 2023 and discusses the expectations for rate cuts by the Federal Reserve and the European Central Bank. The article also mentions factors such as inflation and economic growth that could influence the timing and extent of rate cuts. While the article presents some opinions and forecasts, it is based on factual information and provides a balanced view of the topic.
Noise Level: 6
Justification: The article provides some analysis of the factors that may influence the path of global currencies in 2024, such as the sequence and aggression of central bank rate cuts. It also mentions the potential consequences of rate cuts on the economy and currency value. However, the article lacks in-depth analysis and supporting evidence for its claims. It also does not provide actionable insights or solutions for the reader.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the potential impact of central bank rate cuts on global currencies, specifically focusing on the euro and the dollar.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article does not mention any extreme events or their impact.
www.marketwatch.com 
