Euro Could Fall Further as French Risks Reduce ECB Rate-Rise Prospects -- Market Talk

0846 GMT - The euro has room to weaken further on French fiscal worries as it hits a 17-month low against the dollar, Danske Bank's Jesper Fjarstedt says in a note. "Markets are starting to doubt the near-term case for European Central Bank rate hikes, which marks a stark shift from September when tomorrow's meeting was priced as a nearly certain hike." Markets expect the ECB to leave rates unchanged Thursday and a December rate-rise is less than 80% certain, he says. Danske still expects a December move but tightening to end then. If correct, markets are pricing the ECB's policy rate around 45 basis points too high in one year's time, he says. The euro falls to as low as $1.1111. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

October 28, 2026 04:46 ET (08:46 GMT)