NEW YORK (dpa-AFX) – The euro remained above the $1.06 mark in US trading on Monday. The common currency was last quoted at 1.0618 US dollars. The European Central Bank had set the reference rate at 1.0605 (Friday: 1.0541) dollars and the dollar therefore cost 0.9429 (0.9486) euros.
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Without relevant economic data from the USA, the focus was on data from Germany. The significantly reduced inflation raised hopes that the economy would pick up again. According to preliminary data, the annual inflation rate fell from 4.5 percent in the previous month to 3.8 percent in October. This is the lowest rate since August 2021. The decline was also stronger than economists expected. “Falling inflation rates are also brightening the economic outlook,” said VP Bank chief economist Thomas Gitzel.
The euro also received some boost from German growth figures. The local economy did not get going in the summer either. Gross domestic product (GDP) fell slightly by 0.1 percent in the third quarter compared to the previous quarter. However, analysts had expected a slightly larger decline of 0.2 percent.
The GDP data was slightly better than he feared, wrote analyst Jens-Oliver Niklasch from Landesbank Baden-Württemberg. However, this does not change the overall picture. “Germany’s economy is more or less standing still.” The balance sheet is likely to be similar in the final quarter of 2023. Only afterward can one become a little more confident. Overall, the downside risks to the economy currently predominate./jsl/tih/he