2023-09-01 07:53:00
© Archyde.com. Euro pulls away from two-week peak ahead of US jobs data
FXNEWSTODAY – The euro fell in the European market on Friday against a basket of global currencies, to extend its losses for the second day in a row against the US dollar, moving away from the highest level in two weeks, with the continuation of corrections and profit-taking.
After inflation slowed in Europe during August, there are doubts about the prospects of the European Central Bank raising European rates by about 25 basis points during this month’s meeting.
The American currency continues its gains before the issuance of new data in the United States during August, which provides new evidence about the possibilities of raising American prices during the upcoming November meeting.
Euro exchange rate today
It declined by 0.15% to $1.0828, from the opening price of $1.0843, and recorded today’s high at $1.0854.
Yesterday, the euro lost 0.75% against the dollar, its first loss in the last four days, as part of corrections from a two-week high of $1.0945, and after key inflation data in Europe.
Over the course of last August, the single European currency, the euro, lost 1.4% against the US currency, the dollar, in the first monthly loss in the last three months, due to escalating fears of a European economic recession.
core inflation
Core CPI fell to 5.3% in August from 5.5% in July, in line with market expectations, reducing inflationary pressures on European Central Bank monetary policy makers.
And the core consumer price index is the main measure for the European Central Bank to deal with inflationary pressures in the euro area, so the pricing of the possibility of raising European interest rates in September has declined.
Money markets are pricing in a roughly 30% chance of a 25bp rate hike by the European Central Bank at the next September 14th meeting from 40% earlier in the week.
U.S. dollar
On Friday, it rose by more than 0.1%, to continue its gains for the second day in a row, reflecting the continued rise of the US currency levels against a basket of major and minor currencies.
This rise comes before the release of new jobs data in the United States later today, which provides strong evidence about the prospects for the Federal Reserve to raise US interest rates by about 25 basis points during the upcoming November meeting.
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