Round figures often act like magnets for financial markets. Facing potential trade wars with both the United States and China, a ratcheting up of geopolitical tensions to its East, creeping energy prices and a German election early next year, the euro's 4% fall so far in November is its biggest monthly loss since April 2022 - the month after Russia invaded Ukraine. Money markets are now leaning towards a fourth ECB rate cut of the year next month of as much as 50 basis points to 2.75%, while futures still see little more than a 50% chance the Fed will move at all next month.
