In the morning, the common currency was trading at $0.9884, slightly higher than the previous evening. However, the European Central Bank (ECB) had set the reference rate significantly higher on Tuesday afternoon at $0.9947.
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The euro was able to recover a bit from the price losses of the previous day. Robust data from US job market had buoyed the dollar while the common currency suffered in turn. In September, the number of job vacancies in the US rose surprisingly. The US Federal Reserve has at its monetary policy also the situation on the labor market. A robust labor market gives policymakers more leeway to fight high inflation with sharp rate hikes, which has boosted the dollar.
Monetary policy remains the dominant issue as trading progresses. The Fed is expected to make decisions this evening. Investors are firmly assuming that the US central bank will again raise the key interest rate significantly by 0.75 percentage points. The statements by US Federal Reserve President Jerome Powell following the interest rate decision are eagerly awaited. Investors are hoping for indications of the strength of future interest rate hikes in the USA.
/jkr/jha/
FRANKFURT (dpa-AFX)
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