[ING: ECB Members May Incline Toward Rate Cut if Euro/USD Rises Above 1.20] ING analyst Francesco Pesole stated in a report that if the euro/dollar exchange rate rises above 1.20 due to potentially weak US jobs data, some ECB members may hint at the risk of another rate cut. However, he noted that the euro might need to reach 1.25 to substantially revise downward inflation forecasts and potentially trigger a rate cut. Furthermore, he believes that sporadic verbal interventions in the exchange rate are of limited effectiveness in curbing the dollar-driven euro rally.
