2023-11-07 08:48:00
© Archyde.com The euro is moving away from its two-month peak due to profit taking
FXNEWSTODAY – The euro fell in the European market on Tuesday once morest a basket of global currencies, continuing its losses for the second day in a row once morest the US dollar, moving away from the highest level in two months, with corrections and profit-taking continuing.
This overshadows more aggressive comments from a member of the European Central Bank’s Governing Council, regarding readiness to raise rates once more if necessary, while ruling out early cuts in interest rates.
Euro exchange rate today
It decreased by 0.2% to $1.0695, from the opening price of $1.0717, and recorded the highest level today at $1.0722.
Yesterday, Monday, the euro lost 0.1% once morest the dollar, the first loss in the last three days, following recording earlier in trading the highest level in two months at $1.0756.
European comments
Austria’s central bank governor and member of the European Central Bank’s Governing Council, Robert Holzmann, said on Monday that the central bank must remain vigilant regarding inflation, and be prepared to raise interest rates once more if necessary, and warned that interest rates will not be cut at any time. soon.
Holzman explained: We must be ready once more to raise interest rates if necessary, and we certainly will not declare victory over inflation too early. We have to remain vigilant.
Holzman added: We do not expect any reduction in interest rates soon. Eventually it will happen but at the moment I don’t expect it.
These comments renewed hopes regarding the possibility of another increase in European interest rates, but this increase will be directly linked to developments in inflation and prices in the euro zone.
U.S. dollar
On Tuesday, it rose by 0.25%, continuing the recovery for the second session in a row from the lowest level in two months, reflecting the continued recovery of the US currency levels once morest a basket of major and minor currencies.
This recovery comes in light of the current recovery in short- and long-term returns, which improves the levels of investment demand for the US dollar compared to other low-yielding currencies in particular.
Today, investors are awaiting the comments of monetary policy makers at the Federal Reserve, searching for more strong evidence regarding the future of interest rates in the United States.
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