The decision by the Bank of England and the European Central Bank to lower interest rates this week is a further sign of worsening economic conditions in Europe.
Economists also expect the ECB to make another half-point cut in December and many see euro-area interest rates falling to around 2% by the middle of next year.
Add into this mix, the surprise rate cut by the ECB on Thursday, and it's a marvel that EURUSD has managed to remain as stable as it has (currently trading around 1.3750 levels).