NEW YORK (dpa-AFX) – The course of the euro changed little in US trading on Monday. Most recently, the common currency cost 1.0561 US dollars. The euro was only slightly above the level from the early European trade and is still above its five-year low of 1.0471 dollars, which was marked at the end of April. The European Central Bank (ECB) set the reference rate at 1.0559 (Friday: 1.0570) dollars. The dollar thus cost 0.9471 (0.9461) euros.
The euro’s recent downtrend against the dollar came to an end last week. The US currency had previously benefited from the prospect of significantly higher interest rates in the United States. The US Federal Reserve has implemented the turnaround in interest rates due to high inflation and, according to many experts, will continue to do so with rapid and clear steps. Recently, however, there have been increasing signals that the ECB could also start an interest rate turnaround in the summer. However, it is likely to be more cautious than the Fed.
Otherwise, the foreign exchange market lacks clear impetus. The economic environment remains bleak. Sentix economic sentiment for the euro zone weakened again in May, falling to a two-year low, according to data this morning. Sentiment also continued to deteriorate in other regions of the world, such as the USA. The economic traces of the Ukraine war are becoming more and more visible, Sentix commented on the development. In Germany, the sub-indicator for economic expectations fell to a record low
