The euro rose in the European market on Monday at the beginning of the week’s trading against a basket of global currencies, holding above the lowest level in a week against the US dollar, on its way to achieving its first gain in the last three days, following tough comments from one of the European Central Bank’s monetary policy makers.
These statements increased the possibilities of raising European interest rates later this month, and in order to re-evaluate those possibilities, investors are awaiting a speech by European Central Bank President Christine Lagarde later today.
Euro exchange rate today
The euro rose against the dollar by approximately 0.3% to $1.0804, from the opening price of $1.0776, and recorded the lowest level today at $1.0772.
On Friday, the euro lost 0.65% against the dollar, the second daily loss in a row, and recorded its lowest level in a week at $1.0772, after better-than-expected data on new jobs in the United States and the manufacturing sector during August.
The euro lost 0.2% last week against the dollar, the seventh weekly loss in a row, and part of the longest series of weekly losses since July 2014, due to the widening gap in bond yields between Europe and the United States.
European comments
Belgian Central Bank Governor and European Central Bank member Pierre Wunsch said it was too early to discuss pausing interest rate hikes. We need further rate hikes to address inflation, as core inflation remains very sustainable,” Wunsch added.
These comments increased the chances that the European Central Bank would raise European interest rates by about 25 basis points during the current September 14 meeting, while keeping interest rates high for as long as possible.
Christine Lagarde
In order to re-evaluate these possibilities, investors are awaiting the speech of European Central Bank President Christine Lagarde at 13:30 GMT at the European Economic and Financial Center event in London.
More stringent comments will enhance these possibilities, which is in favor of the continued rise in the euro’s exchange rate in the foreign exchange market, pending the issuance of several important economic data in the euro zone.
