Traders Expect 31 Basis Points ECB Rate Cut in December, 22% Chance of 50 Basis Point Cut After Germany's GDP Rises 0.2%

Traders have adjusted their expectations regarding interest rate cuts from the European Central Bank (ECB), now predicting an easing of 31 basis points in December. This marks a notable shift from earlier forecasts, where there was a 45% chance of a 50 basis point cut, which has now been reduced to a 22% likelihood. In related economic data, Germany's preliminary third-quarter GDP rose by 0.2% quarter-on-quarter, defying expectations of a 0.1% decline. Following this news, the euro appreciated, with the EUR/USD exchange rate rising by 0.3% to 1.0852, the highest level since October 21.