# Will worries about the euro stop the ECB from cutting? | Capital Economics

> Capital Economics argues that exchange rate moves have only a small effect on euro-zone inflation. It concludes that a large currency move would be needed to change the pace of ECB rate cuts.

- Date: 2024-04-19 · published 2024-04-19T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/30943-will-worries-about-the-euro-stop-the-ecb-from-cutting-capital-economics
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

The analysis implies the ECB is unlikely to be forced off its easing path by euro weakness, so currency-driven feed cost increases are likely to be limited.

## Read by commodity

- EURUSD: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2024-05-15 | [Watch: Why a rate-cutting ECB won’t be too worried about the euro \| ING THINK](https://feedsoft.ai/events/30473-watch-why-a-rate-cutting-ecb-won-t-be-too-worried-about-the-euro-ing-think.md) | +0.3% | +0.2% |
| EURUSD | 2020-09-08 | [ECB will struggle to rein in the euro, say investors](https://feedsoft.ai/events/51334-ecb-will-struggle-to-rein-in-the-euro-say-investors.md) | +0.5% | -0.3% |
| EURUSD | 2025-09-22 | [ECB can still frustrate euro surge with 'contingency cut': Mike Dolan — TradingView News](https://feedsoft.ai/events/23097-ecb-can-still-frustrate-euro-surge-with-contingency-cut-mike-dolan-tradingview.md) | -0.5% | -0.8% |
| 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% |
| EURUSD | 2024-12-10 | [Euro-dollar has hit the floor, but don't expect a bounce \| Oxford Economics](https://feedsoft.ai/events/27177-euro-dollar-has-hit-the-floor-but-don-t-expect-a-bounce-oxford-economics.md) | -0.5% | -2.4% |

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/publications/europe-economics-update/will-worries-about-euro-stop-ecb-cutting

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