Rate cut fails to inspire euro rally

MARKET NEWS

An interest rate cut in the eurozone has prompted worries over growth, says Matthew Clements, economist at Prebon Yamane in London

European Central Bank action this week failed to provide any support for the euro, with euro/dollar breaking back below $0.89 and breaching its 200-day moving average. The long-awaited decisive move by ECB president Wim Duisenberg et al appears to have raised concern about the ‘official’ view of longer-term growth prospects in the eurozone. There may also be a per