© Reuters. The euro begins the week of the European Central meeting in positive territory
FXNEWSTODAY – The euro rose in the European market on Monday against a basket of global currencies, continuing to recover for the second day in a row from the lowest level in five weeks against the US dollar, beginning the week of the European Central Bank meeting in positive territory.
After aggressive comments by monetary policy makers in the euro zone, markets have begun to rule out a cut in European rates in the first quarter of this year, awaiting more evidence about the timing of the cut, which may come at the beginning of the summer, according to statements by Bank President Christine Lagarde.
The levels of the US currency declined as yields in the United States stopped rising, awaiting more evidence about the expected rate cuts by the Federal Reserve.
Price view
Euro exchange rate today
It rose approximately 0.2% to ($1.0909), from the opening price of ($1.0889), and recorded the lowest level at ($1.0886).
On Friday, the euro achieved a 0.2% rise against the dollar, the second daily gain in the last three days, as part of the recovery from a five-week low of $1.0844.
In terms of last week’s transactions, the euro lost 0.5% against the dollar, the second weekly loss in the last three weeks, due to renewed concerns about interest rate differences between Europe and the United States.
European Central Bank
The European Central Bank has been meeting on Wednesday and Thursday since this week, to discuss the monetary policy appropriate to economic developments in Europe, amid full expectations about keeping European interest rates without any change, for the third meeting in a row.
Some members of the European Central Bank Council opposed the possibility of lowering European interest rates starting next May, in light of the existing risks around inflation and high prices, and the continued rise in wage pressures.
European Central Bank President Christine Lagarde said at the World Economic Forum in Davos that interest rates in the euro zone could fall in the summer and not in the spring.
The governor of the German Central Bank and member of the European Central Bank, Joachim Nagel, a hawk, said: It is too early to talk about interest rate cuts, as inflation is very high. We want to see more data.
The Governor of the Central Bank of Austria and member of the European Central Bank, Robert Holzmann, said this week in Davos: Geopolitical risks in the Middle East and shipping disturbances in the Red Sea pose a major threat to inflation.
Holzman warned that the ECB should not count on cutting interest rates at all in 2024.
U.S. dollar
On Monday, it fell by more than 0.1%, continuing its losses for the second session in a row, moving away from the highest level in five weeks at 103.69 points, reflecting the slowdown in the levels of the US currency against a basket of major and minor currencies.
Bond yields in the United States fell for the second session in a row, awaiting more important economic data this week, which will provide a new pricing for the possibilities of a Federal Reserve interest rate cut next March.
Artistic look
The euro starts positive – Analysis – 01-22-2024
2024-01-22 10:25:00
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