Bank of America analyst: If the European Central Bank maintains caution, the euro may pump slightly

Bank of America analysts said in a report on January 28 that if the European Central Bank takes a cautious stance on interest rate cuts at Thursday's meeting, the euro may pump slightly. "The market has already priced in two rate cuts for the next two meetings, and the European Central Bank is unlikely to promise further cuts on this basis." They said that given the short positions on the euro, this potential cautious stance may provide some mild support for the euro. However, Bank of America remains cautious about the euro in the near term, as the risk of US trade tariffs may increase the possibility of further interest rate cuts by the European Central Bank.