Economics
Euro Rallies Then Falls Against the Dollar on Upbeat US Inflation
The euro today rallied higher against the US dollar following hawkish speeches by European Central Bank policymakers during the early European session. The EUR/USD currency pair later gave up some of its gains as the Brexit rhetoric weighed on the single currency combined with the upbeat American inflation data. The EUR/USD currency pair today rallied from an initial low of 1.1823 in the Australian market to a high of 1.1874 in the mid-European session before falling […]
The euro today rallied higher against the US dollar following hawkish speeches by European Central Bank policymakers during the early European session. The EUR/USD currency pair later gave up some of its gains as the Brexit rhetoric weighed on the single currency combined with the upbeat American inflation data.
The EUR/USD currency pair today rallied from an initial low of 1.1823 in the Australian market to a high of 1.1874 in the mid-European session before falling ahead of the American session.
The currency pair’s initial rally was boosted by the hawkish comments from ECB policymakers published by Reuters. The ECB Governor Christine Lagarde said that the risk of a second wave of coronavirus infections across the euro area added uncertainty to the region’s economic recovery. Philip Lane, the ECB’s Chief Economist, clarified that the bank was open to very accommodative policies. Isabel Schnabel, an ECB’s Executive Board member, added that the bank’s measures were working, but some of them could take much longer to bear fruit. The release of in-line German inflation data for August by the Federal Statistical Office had a muted impact on the pair.
The currency pair headed lower after the EU gave Britain a 3-week ultimatum to alter its stance on Brexit, which soured investor risk appetite. The release of upbeat US inflation data for August by the Bureau of Labor Statistics also dragged the pair lower.
The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events.
The EUR/USD currency pair was trading at1.1836 as at 15:10 GMT, having fallen from a high of 1.1874. The EUR/JPY currency pair was trading at 125.70, having dropped from a high of 126.12.
© SimonMugo for Forex News, 2020. |
Permalink |
No comment |
Add to
del.icio.us
Post tags: Brexit, Bureau of Labor Statistics, Christine Lagarde, CPI, EUR/JPY, EUR/USD, European Central Bank, Eurozone, Federal Statistical Office, Inflation, Isabel Schnabel, Philip Lane
Feed enhanced by Better Feed from Ozh
Swiss sinks on SNB surprise, Fed pauses
SNB surprises and holds interest rates Fed delivers a ‘hawkish hold’ The Swiss franc has fallen sharply on Thursday. In the European session, USD/CHF…
The Hard-Asset Inflation / Paper-Asset Deflation Theory
The Hard-Asset Inflation / Paper-Asset Deflation Theory
Authored by Bruce Wilds via Advancing Time,
All fiat currencies are no more than…
Broadcom Shares Slide On Report Google Plans To Abandon Chip Supplier
Broadcom Shares Slide On Report Google Plans To Abandon Chip Supplier
Broadcom Inc. shares fell in premarket trading in New York following…
-
Financing News23 hours agoResults of Annual Meeting of Shareholders and Change of Auditors
-
News Releases15 hours agoCopper Fox Announces 2023 Third Quarter Operating and Financial Results
-
Economics20 hours agoThe 7 Most Undervalued S&P 500 Stocks to Buy in September 2023
-
Uncategorized24 hours agoEquity Metals advances Silver Queen project in Skeena Arch region in British Columbia
-
Financing News20 hours agoGoliath Increases Private Placement up to $8,600,000 After Receiving Significant Strategic and Institutional Orders
-
Companies11 hours agoResources Top 5: For its first Oz investment, this Hong Kong group sunk $10m into a NSW gold junior worth… $7m
-
Precious Metals19 hours agoFOMC Leaves Rates Unchanged, Signals Much More Hawkish 2024
-
Companies10 hours agoANNOUNCEMENT – Rock Tech Announces Investor Relations Appointment
