The euro fell in the European market on Wednesday against a basket of global currencies, to extend its losses for the second day in a row against the US dollar, amid the scarcity of economic data scheduled for release this week in Europe.
And the US currency continues its gains for the third day in a row, in light of the high pricing of the possibility of raising the federal interest rates during the current month, and in order to re-price these possibilities, later today, investors are waiting for the issuance of the minutes of the last monetary policy meeting of the Federal Reserve.
Euro exchange rate today
The euro fell against the dollar by 0.1% to $1.0867, from the opening price of trading at $1.0878, and recorded the highest level today at $1.0890.
The euro ended yesterday's trading down by 0.3% against the dollar, in the first loss in the last three days, due to the activity of buying the US currency as the best available investment.
Limited data
European economic data is limited this week and remains inconsequential compared to the available US data, as only retail sales figures for May from the Old Continent will be released on Thursday. However, the European currency could be vulnerable if data indicates a slowdown in consumer spending.
Continental economic data indicates a steady decline in recent months, but the decline is mainly confined to the manufacturing sector and parts of the economy linked to the export of goods, while service sectors are improving in many countries.
If any unexpected decline in retail sales figures occurs tomorrow, Thursday, it could mark a drastic change in European data, but the impact the euro could have will depend largely on whether financial markets see this as reducing the need for further interest rate increases. from the European Central Bank.
U.S. dollar
On Wednesday, the dollar index rose by more than 0.1%, extending its gains for the third consecutive session, reflecting the continued rise of the US currency levels against a basket of major and minor currencies.
Futures pricing for the possibility of raising federal interest rates at a rate of 25 basis points during the next July 26 meeting is currently stable at 89%, and futures pricing for the possibility of keeping US interest rates unchanged at 11%.
In order to re-price these possibilities, investors are awaiting, later today, the issuance of the minutes of the Federal Reserve’s monetary policy meeting, which was held on June 13-14, which resulted in the announcement of a temporary halt to the cycle of raising US interest rates.
Tighter comments will strongly boost the odds of a Fed rate hike at the current July meeting, and raise the pricing for another 25 basis point increase at the next September meeting.
