NEW YORK (dpa-AFX) – The euro fell on Wednesday. The European common currency last cost 1.0485 US dollars in New York trading. The European Central Bank (ECB) set the reference rate at 1.0507 (Tuesday: 1.0527) dollars, which means the dollar cost 0.9517 (0.9499) euros.
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Data on consumer prices in the US did not provide any clear impetus to the market. As expected, price inflation in the USA increased somewhat in November. The inflation rate rose to 2.7 percent from 2.6 percent in the previous month.
However, a majority of experts still expect the US Federal Reserve to cut key interest rates next week. “The rise in the inflation rate is unlikely to dissuade the Fed from issuing a policy in a week Interest rate cut“To add 25 basis points,” commented Thomas Gitzel, chief economist at VP Bank. After all, the key interest rate is still well above the inflation rate. “It is also crucial that, in view of the available figures on inflation developments, no new inflation drivers were added in November.”
This Thursday the ECB will announce its interest rate decision. A further cut in the key interest rate by 0.25 percentage points is expected. Important economic data from the Eurozone will no longer be published before the decision./jsl/jha/ajx/nas