The euro begins to recover before the decisions of the Federal Reserve

The euro rose in the European market on Wednesday against a basket of global currencies, to start recovering from its lowest level in two weeks against the dollar index futures, on its way to achieving its first gain in the last seven days, with the start of the activities of the monetary policy meeting of the European Central Bank.

And the US currency moved away from the peak of two weeks, with continued correction and profit-taking operations, and before the Federal Reserve’s monetary policy decisions later today, when it is likely to announce the last increase in the current interest rate hike cycle in the United States.

Euro exchange rate today

The euro rose against the dollar by 0.25% to $1.1075, from the opening price of trading at $1.1048, and recorded the lowest level today at $1.1038.

Yesterday, the euro lost 0.15% against the dollar, its sixth consecutive daily loss, hitting a two-week low of $1.1020, due to worse-than-expected data on the business climate in Germany in July.

European Central Bank

Later today, the activities of the monetary policy meeting of the European Central Bank will start, with decisions to be issued tomorrow, Thursday, amid full expectations about raising European interest rates by 25 basis points to a range of 4.25%.

It is expected that the details of the meeting and the statements of the bank's president, Christine Lagarde, will provide more strong evidence about the existence of additional increases in European interest rates this year, starting from the next September meeting.

Founder and CEO of iBank First, Pierre Antoine Dusollier, said some hawks in the European Central Bank are retreating, but not all of them.

U.S. dollar

On Wednesday, the dollar index fell by 0.2%, extending its losses for the second consecutive session, moving away from the highest level in two weeks at 101.65 points, reflecting the continued slowdown in US currency levels against a basket of major and minor currencies.

This comes amid investors' reluctance to build new purchasing positions in the US currency pending the results of the Federal Reserve's monetary policy meeting, which is expected to result in raising US interest rates by about 25 basis points to a range of 5.50%, the highest level since 2007.

Many economists believe that this expected increase today will be the last in the current cycle of raising interest rates in the United States, especially with US inflation rates approaching the central bank’s target in the medium term, and the Federal Reserve members’ fears of excessive monetary tightening.