That is why the euro cannot hold its profits to the US dollar

The community currency euros was traded on Wednesday afternoon at $ 1.1611 and thus roughly at the level from the previous evening. The European Central Bank (ECB) set the reference course to $ 1.1598 (Tuesday: 1.1607). The dollar cost 0.8622 (0.8615).

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After the ceasefire between Israel and Iran, the hope of relaxing the situation in the Middle East had caused more risk of risk among investors, which put the dollar under pressure and gave the euro in return buoyancy. The community currency had sometimes reached the highest level since October 2021 at $ 1.1641.

In addition, the market was on the market Monetary policy referred to the USA. The recent statements by the President of the US Federal Reserve, Jerome Powell, indicate that the Fed is in no hurry despite the vehement claims by US President Donald Trump. Dekabank experts also referred to Powell’s note that the key interest rate could be lowered to the neutral level. This is currently estimated in a range of 2.5 to 3 percent.

The key interest rate in the United States is currently between 4.25 and 4.50 percent. The experts of the Dekabank still see the obstacle to interest in the increased inflation expectations due to higher tariffs. “But if the next inflation data also surprises downwards and the reciprocal tariffs are rather moderate from July 9th, the door would open for previous and clearer interest reductions than expected from the market,” the decabank said. The view of falling interest strains the dollar.

In addition to other important currencies, the ECB set the reference courses for one euro to 0.85260 (0.85270) British pounds, 169.07 (168.27) Japanese yen and 0.9361 (0.9387) Swiss franc. The Gubala Gold cost $ 3,320 in London in the afternoon. That was about $ 4 less than the day before.

Frankfurt (dpa-Afx)