The euro rose in the European market on Monday against a basket of global currencies, to start recovering from its lowest level in six weeks against the US dollar, about to achieve its first gain in the last seven days, in light of the activity of buying from low levels.

This week, investors are awaiting important economic data in Europe, especially those related to the performance of the main industrial and service sectors during August, which provides strong evidence about the health of the European economy during the third quarter of this year.

Investors are also awaiting comments from European Central Bank President Christine Lagarde at the Jackson Hole Global Forum, looking for new clues about the future of interest rates in the eurozone.

Euro exchange rate today

The euro rose against the dollar by 0.2% to $1.0888, from the opening price of trading at $1.0866, and recorded the lowest level today at $1.0865.

On Friday, the euro lost less than 0.1% against the dollar, its sixth consecutive daily loss, hitting a six-week low of $1.0845, as buying the US currency as the best investment available.

The euro lost 0.7% last week against the dollar, its fifth consecutive weekly loss, among the longest streak of weekly losses since February 2022, due to renewed concerns about interest rate differentials between Europe and the United States.

European interest

During its July meeting, the European Central Bank linked the path of monetary tightening and raising European interest rates in the near future to the extent of the development of economic data in the eurozone.

Continuing to disclose further slowdown in inflation, stagnant industrial activities, and easing of tightening labor market conditions, will help the Bank take a decision to temporarily stop raising European interest rates.

On Wednesday, investors are awaiting the release of data on the main industrial and services sectors in Europe during August, which are expected to provide a new pricing for the possibility of additional increases in European interest rates.

In order to re-price those possibilities as well, investors are waiting for the speech of European Central Bank President Christine Lagarde at the Jackson Hole Global Forum, as the speech is expected to include new evidence about the future of interest rates in the euro area in light of the receding inflationary pressures on European monetary policy makers.