Given what we have seen from the PMI data and what not, it’s hardly a surprise. As Europe’s largest economy, Germany has been struggling hard and that has led to brewing worries at the ECB. In particular, the manufacturing sector continues to suffer from a recession with no brighter prospects on the horizon yet.
Looking to ECB pricing, traders have priced in ~99% odds of a 25 bps rate cut for this week.
This article was written by Justin Low at www.forexlive.com.
