FRANKFURT (dpa-AFX) – The exchange rate of the euro fell just below the $1.09 mark again on Monday. However, market observers spoke of a lack of momentum in trading ahead of important interest rate decisions by major central banks, with the euro moving in a comparatively narrow trading range. In the afternoon the common currency cost 1.0896 dollars. The European Central Bank (ECB) set the reference rate at 1.0890 (Friday: 1.0887) dollars. The dollar therefore cost 0.9182 (0.9185) euros.
Advertising
Trade EUR/USD and other currencies with leverage via CFD (long and short)
Trade currency pairs like EUR/USD with leverage at Plus500 and participate in rising and falling prices.
Plus500: Please note the Hints5 about this advertisement.
In the foreign exchange market, interest is increasingly focused on important interest rate decisions that are on the agenda in the coming days. This week the ECB will make its decision, followed the week after by the US Federal Reserve. The central banks of Japan, Norway and Turkey are also holding interest rate meetings this week.
A lot of monetary policy currently revolves around the question of when and to what extent major central banks such as the Fed or the European Central Bank will lower their interest rates again. Speculation about rapid interest rate cuts has been put on hold after numerous central bankers spoke out against a rapid turnaround in interest rates. Most recently, ECB President Christine Lagarde had clear words: At the World Economic Forum in Davos, she brought up the first interest rate cut in the summer months.
For other important currencies, the ECB set the reference rates for one euro at 0.85575 (0.85825) British pounds, 160.95 (161.17) Japanese yen and 0.9458 (0.9459) Swiss francs. A troy ounce of gold was trading at $2,025 in London in the afternoon. That was about four dollars less than Friday./jkr/la/he