Euro Dollar Course: Why the Euro shows little movement

The euro’s exchange rate stabilized on Wednesday after the previous day’s losses.

The common currency, the euro, traded at $1.0862 in the morning, roughly the same level as the previous evening. The European Central Bank had recently set the reference rate at 1.0887 (Monday: 1.0908) dollars.

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On Tuesday, the euro slipped to its lowest level since mid-June. The slide was accompanied by another rise in US 10-year Treasury yields, which had strengthened the dollar and, in turn, weighed on the euro. Shortly before the central bankers’ meeting in Jackson Hole, Wyoming, which starts on Thursday and ends on Saturday, the markets are becoming increasingly nervous. Experts are hoping for clues as to whether the US Federal Reserve will raise interest rates again in the fight against inflation.

In the middle of the week there are purchasing manager indices for the market euro zone and for important individual countries in the common currency area. In addition to the Ifo business climate for Germany due on Friday, the indices are among the most closely watched economic indicators. According to economists, these are likely to point to a persistently gloomy economic situation.

/la/jha/

FRANKFURT (dpa-AFX)

Image sources: Pedro Salaverría / Shutterstock.com, PHILIPPE HUGUEN/AFP/Getty Images

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