© Reuters. Euro abandons 3-month high due to profit taking
FXNEWSTODAY – The euro fell in the European market on Wednesday against a basket of global currencies, giving up its highest level in three months against the American, in the process of incurring its first loss in the last four days, due to correction operations and profit-taking.
In addition to selling to book profits, the single currency is declining after the release of disappointing data on factory outputs during September, in the latest indicators of economic weakness in the euro zone.
Euro exchange rate today
It fell by 0.3% to $1.0844, from the opening price of $1.0878, and recorded the highest level today at $1.0883.
On Tuesday, the euro achieved a 1.7% rise against the dollar, the third daily gain in a row, and the largest daily gain in 2023, specifically since November 10, 2022, and recorded the highest level in three months at $1.0887.
This largest daily gain in a year was due to lower-than-expected data on key inflation rates in the United States during October, which strengthened the hypothesis that the Federal Reserve had already finished the cycle of raising US rates.
Therefore, concerns about the widening of the current gap in interest rates between Europe and the United States are declining, with the market focus shifting to speculation about early cuts in interest rates by the European Central Bank and the Federal Reserve.
Weak data
Data released today in Europe showed a decline of 1.1% during September, exceeding market expectations for a decline of 0.9%, and production recorded an increase of 0.6% in August.
In the latest indications of weakness in the Eurozone economy during the third quarter of this year, enhancing the possibility that the European Central Bank will continue to stop raising prices during the coming period.
These disappointing data also contradict the recent market narrative, which says that “peak pessimism” has been reached regarding the eurozone economy, which is putting negative pressure on the euro’s exchange rate against a basket of global currencies.
2023-11-15 12:35:00
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