Political uncertainty in Germany and France along with a dismal economic outlook is pressuring Europe to lower interest rates.
They probably will, but will they be aggressive cuts to stimulate the economy, or will they be gradual given inflation concerns?
Complicating matters further are potential US tariffs.
European decision makers have some tough decisions to make.
The sovereign APYs are already low, and they could go lower.
And, the Euro versus the USD must be watched. Lower interest rates could take the Euro down further.Key to all this is what will the Euro do?
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