# Watch: Why a rate-cutting ECB won’t be too worried about the euro | ING THINK

> ING analyst Francesco Pesole argues that the ECB can cut rates next month without major euro weakness, because markets expect the Fed to start easing only in September. The rate divergence between the two central banks is the key factor for the euro.

- Date: 2024-05-15 · published 2024-05-15T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/30473-watch-why-a-rate-cutting-ecb-won-t-be-too-worried-about-the-euro-ing-think
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Policy divergence between the ECB and Fed is the main driver of the euro and dollar, which in turn sets the currency backdrop for dollar-priced commodity trade.

## Read by commodity

- DXY: neutral
- EURUSD: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2024-04-19 | [Will worries about the euro stop the ECB from cutting? \| Capital Economics](https://feedsoft.ai/events/30943-will-worries-about-the-euro-stop-the-ecb-from-cutting-capital-economics.md) | +0.6% | +2.0% |
| EURUSD | 2021-01-28 | [ECB despot rate cut isn't the way to counter Euro strength – IIF — Octa](https://feedsoft.ai/events/49381-ecb-despot-rate-cut-isn-t-the-way-to-counter-euro-strength-iif-octa.md) | -0.6% | +1.1% |
| EURUSD | 2025-09-11 | [Traders raise bets that the ECB is done cutting rates \| Reuters](https://feedsoft.ai/events/23093-traders-raise-bets-that-the-ecb-is-done-cutting-rates-reuters.md) | +1.1% | -0.9% |
| EURUSD | 2020-01-23 | [EUR & the ECB: The good, boring funding currency \| articles \| ING THINK](https://feedsoft.ai/events/55291-eur-and-the-ecb-the-good-boring-funding-currency-articles-ing-think.md) | -0.7% | -2.6% |
| EURUSD | 2019-12-12 | [EUR & ECB: The funding characteristic of the euro still intact \| articles \| ING THINK](https://feedsoft.ai/events/55781-eur-and-ecb-the-funding-characteristic-of-the-euro-still-intact-articles-ing.md) | +0.2% | +0.2% |
| DXY | 2022-05-23 | [Why some ECB officials are suddenly concerned about the weak euro \| snaps \| ING THINK](https://feedsoft.ai/events/41609-why-some-ecb-officials-are-suddenly-concerned-about-the-weak-euro-snaps-ing.md) | -0.9% | +1.1% |
| DXY | 2024-07-10 | [Why the Fed cutting interest rates may weaken the U.S. dollar](https://feedsoft.ai/events/29459-why-the-fed-cutting-interest-rates-may-weaken-the-u-s-dollar.md) | -0.6% | +0.2% |
| DXY | 2020-03-03 | [Canadian dollar weakens as investors bet on Bank of Canada matching Fed rate cut - The Globe and Mail](https://feedsoft.ai/events/54361-canadian-dollar-weakens-as-investors-bet-on-bank-of-canada-matching-fed-rate.md) | +0.3% | +5.5% |

## Sources

- think.ing.com: https://think.ing.com/articles/watch-why-a-rate-cutting-ecb-wont-be-too-worried-about-the-euro/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.