The euro has reached its lowest level since 2022, trading at $1.0335, due to expectations of aggressive interest rate cuts from the European Central Bank (ECB) in order to support the struggling economy.

This decline, which is over 1%, is a result of disappointing data showing that business activity in Germany and France, the largest economies in the region, contracted more than analysts had predicted.

Market expectations have changed significantly, with the likelihood of a half-point rate cut next month increasing to nearly 60%, up from around 15% just days ago. This change reflects growing concerns about economic performance in the eurozone and the potential need for the ECB to take decisive action to stimulate growth.