NEW YORK (dpa-AFX) – The euro recovered somewhat in US trading on Friday from its two-month low from late European trading. The shared currency was last trading at $1.0731 after falling as low as $1.0702. The European Central Bank set the reference rate at 1.0751 (Thursday: 1.0735) dollars. The dollar thus cost 0.9301 (0.9315) euros.
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The market was paying close attention to the fact that there seems to be some movement in the US debt dispute. This is indicated, among other things, by a report by the “New York Times”. Accordingly, the negotiators from Democrats and Republicans have begun to draft a legal text. However, some details are still open. According to the newspaper, the debt limit is to be raised for two years.
In the course of trading, robust US economic data had already been published, which had cost the euro a large part of its daily gains. Durable goods orders rose unexpectedly in April. “The order situation is positively surprising and industrial development seems to remain solid despite the weak mood, albeit with little momentum,” stated analyst Ralf Schweden from Landesbank Hessen-Thüringen.
The recently increased expectations of a rate hike According to Circulation, however, the USA is being accelerated slightly, also because the PCE price index, which the US Federal Reserve pays particular attention to, and consumer spending, which were published at the same time, were above expectations. For a good year now, the Fed has been fighting high inflation with sharp interest rate hikes. For their next meeting in mid-June, however, it is still unclear on the financial markets how the interest rate decision will turn out./edh/la/men