Around 2:40 p.m. GMT (4:40 p.m. CET), the euro fell 0.52% to 1.0660 dollars per euro following the meeting of the European Central Bank (ECB)
The euro fell once morest the US dollar on Thursday following the meeting of the European Central Bank (ECB), which promised rate hikes in July and September but also insisted on its desire not to fragment the bond market.
Around 2:40 p.m. GMT (4:40 p.m. CET), the euro lost 0.52% to 1.0660 dollars for one euro.
If the ECB promised a first increase in more than ten years in July, this had already been signaled to the markets and participated in the rise of the euro since its lows in mid-May.
In addition, the president of the monetary institute Christine Lagarde insisted during a press conference on the attention that would be paid to the sovereign debt market in the euro zone.
The end of the asset buyback program and too rapid an increase might make the price of borrowing too high for the most indebted countries.
Already, the rate on the 10-year loan has reached its highest since the end of 2018 in Italy.
Ms. Lagarde assured that the ECB might “deploy new instruments” to avoid this fragmentation, without specifying which ones.
“His comments suggest that if the situation worsens, an asset purchase program might specifically target peripheral countries,” said Fawad Razaqzada, an analyst at StoneX.
After the ECB meeting, investors will look to monthly US inflation data on Friday, followed by BoE and Fed meetings next week.
Currency traders also kept an eye on the yen, which rose (+0.15% to 134.05 yen per dollar), without compensating for its plunge which led it earlier in the session to 134.56 yen , the lowest since 2002.
