NEW YORK (dpa-AFX) – The euro tends to remain on the rise against the US dollar due to increased expectations of interest rate cuts in the USA. On Thursday morning, 1.1602 dollars had to be paid for the common currency, slightly more than the evening before. This means that the euro is trading around a cent higher than at the beginning of the week.
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In recent days, expectations for the US Federal Reserve’s December meeting have corrected again; “Meanwhile is another one Interest rate cut almost completely priced in again by 25 basis points,” explained foreign exchange expert Michael Pfister from Commerzbank in his morning commentary.
This may be partly due to the fact that Kevin Hassett, the top candidate to succeed Fed chief, is probably a representative of a looser stance monetary policy crystallized, says Pfisterer. In addition, US economic data still did not show a major slump, but did show a slow slowdown in the US economy. “Perhaps it is simply due to unusual volatility resulting from uncertainty about how to proceed.”
Meanwhile, no major stimulus for the foreign exchange market is expected on Thursday. Important economic data is not on the agenda, also because the “Thanksgiving” holiday is celebrated in the USA./mis/jha/