The euro rose in the European market on Monday against a basket of global currencies, expanding its gains for the fifth day in a row against the US dollar, recording the lowest level in two weeks, amid receding concerns about the widening interest rate gap between Europe and the United States.
This is after comments by some European Central Bank officials reduced the market's prospects for early cuts in European interest rates, awaiting more evidence about the future of monetary policy in the euro zone.
Price view
Euro exchange rate today
The euro rose against the dollar by 0.15% to ($1.0799), the highest in two weeks, from the opening trading price of ($1.0783), and recorded the lowest level at ($1.0777).
On Friday, the euro achieved an increase of less than 0.1% against the dollar, the fourth daily gain in a row, amid improved risk appetite in the markets.
European comments
In an interview with the Financial Times, European Central Bank member Isabel Schnabel said last week: Recent economic data and strong market bets on rapid interest rate cuts mean that the ECB must be patient before easing monetary policy.
Schnabel added: Inflation in service prices, a flexible labor market, a noticeable easing in financial conditions, and tensions in the Red Sea, all of this warns against adjusting the monetary policy stance soon.
European interest
These more hawkish comments reduced the possibility of a cut in European interest rates by about 25 basis points next April, which reduces concerns about the widening of the interest rate gap between Europe and the United States, which is currently stable at 100 basis points in favor of the American rate.
This week, investors are awaiting several important economic data in Europe, and the comments of some European Central Bank officials, especially Bank President Christine Lagarde, with the aim of obtaining more new evidence about the future of monetary policy in the euro zone this year.
Artistic look
The euro starts positive - Analysis - 02-12-2024a
