In New York trading, the common currency cost $1.0533. Before the labor market data, the euro was still above the $1.06 mark. The European Central Bank (ECB) had set the reference rate at 1.0601 (Wednesday: 1.0599) dollars, the dollar thus cost 0.9433 (0.9435) euros.

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    US data points to continued robust labor market. According to figures from the private employment service provider ADP, the private sector in the USA unexpectedly created many new jobs in December. In addition, the weekly initial jobless claims fell noticeably in the past week.

    However, this development, which appears pleasing at first glance, makes it more difficult for the US Federal Reserve to fight inflation. The shortage of labor tends to lead to rising wages, which can lead to rising prices. This could, in turn, drive the US Federal Reserve to raise interest rates more sharply than previously expected on the markets. Rising interest rates tend to support a currency. The US government’s official jobs report will be released on Friday.

    The price data published in the morning from the euro zone confirmed the picture of easing price pressure in the euro currency area. The increase in producer prices in the euro zone weakened significantly in November. The fall in the rate was also stronger than expected. In Italy, overall inflation moderated somewhat in December. The drop in inflation rates in the euro zone could reduce the pressure on the ECB to counteract the sharp rise in prices with significant interest rate hikes. Consumer price data for the entire currency area will be released on Friday.

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    NEW YORK (dpa-AFX)

    Image sources: qvist / Shutterstock.com, PaulPaladin / Shutterstock.com

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