The euro fell sharply against the US dollar during trading on Thursday, heading towards the longest daily losing streak since late September 2023, as the euro-dollar currency pair declined for the seventh consecutive session coinciding with a speech by European Central Bank President Christine Lagarde.

The drop in the euro-dollar came after the European Central Bank decided to cut interest rates by 25 basis points, making the main interest rate 3.40%, which aligned with market expectations.

Additionally, the inflation growth rate in the Eurozone slowed to 1.7% for September according to the final official data released today, with the preliminary reading showing a slowdown in inflation growth to 1.8% in September.

Thus, with inflation growth slowing below the European Central Bank's target of 2% alongside weak economic conditions within the Eurozone, it is expected that the ECB may continue its interest rate cut cycle at a greater and more consistent pace.

In terms of trading in major foreign exchange markets today, the euro-dollar recorded a decline of about 0.30% to be traded near the level of 1.0829 dollars.