Organization: The Euro's further strengthening may prompt the European Central Bank to consider cutting interest rates.

Credit Suisse Macro Analyst Jack Allen-Reynolds pointed out that the recent appreciation of the euro against the US dollar may increase the likelihood of the European Central Bank cutting interest rates later this year. Given that inflation risks have tended to decline, a further strengthening of the euro would increase the probability of a rate cut. ECB policy makers may still engage in verbal intervention, but the likelihood of direct intervention in the foreign exchange market by buying dollars is extremely low.