Francois Villeroy de Galua, Governor of the Bank of France and GC member, said a rate cut in spring was now “very likely” on Friday, adding, “spring goes from April to June.”
His ECB colleague, Bundesbank President Joachim Nagel, said "The probability is increasing that we could see an interest-rate cut before the summer break," adding, "This will be data dependent, but the prospects have brightened." According to a report on Poundsterlinglive.com.
The comments led to broad based weakness for the Euro as lower interest rates reduce the attractiveness of a currency as a place for foreign investors to park their capital.
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