London, May 18 (Bloomberg) -- Lee Ferridge, head of global currency strategy at Rabobank International, comments on the euro and dollar. The single currency weakened to 87.75 U.S. cents, from 88.23 late yesterday. ``We were already down here before the (euro region's industrial production) report. It didn't have much of an impact. We've already had all the components'' in the report, he said. Today's fall in the euro ``could be just one big order going through.'' The outlook for the euro-region economy ``looks a bit gloomy.''
Comments made yesterday by the European Central Bank that growth in M3 may be about 1 percentage point less than the three- month average of 4.8 percent published on April 30 ``were a good thing. Anything lowering inflation is good. The ECB has more room to cut rates again.'' A fall in the euro ``would be a big deal if we go through 87 (U.S. cents). It's possible we could take a run at it today, but unlikely we'll break it.'' The longer-term outlook for the euro is quite good because ``there's more bad news to come from the U.S.''