Credit Suisse: The euro remains strong, and the European Central Bank may adopt a cautious interest rate cut strategy

According to Jin10 Data on December 5th, despite the collapse of the French government, the Euro is still pumping, while the US dollar is dropping. Christine Lagarde, the President of the European Central Bank, said on Wednesday that the fight against inflation is not yet over. According to a report by Ipek Ozkardeskaya, an analyst at UBS, given the uncertain outlook, the most cautious choice for the European Central Bank is to cut interest rates by 25 basis points this month, rather than 50 basis points. The expected drop in the market, as well as the resilience under the chaotic situation in France, has strengthened support for the Euro against the US dollar around 1.05, which should further rebound the Euro.