The euro moved in a narrow range on Tuesday.
The common currency most recently cost 1.0833 US dollars. He was at the same level as in the morning. On Monday, the euro had fallen to its lowest level since mid-December. The European Central Bank (ECB) set the reference rate at 1.0846 (Monday: 1.0823) dollars. The dollar therefore cost 0.9219 (0.9239) euros.
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Growth data from the Eurozone The bottom line was that they were a little better than expected. With stagnation in the 2023 quarter, the euro area was just able to avoid a technical recession. Analysts had expected a further decline in economic output. In the largest economy, Germany, the economy shrank by 0.3 percent. Development stagnated in France, while Italy and especially Spain grew.
“The figures do not indicate any urgent need for action for the European Central Bank,” commented Thomas Gitzel, chief economist at VP Bank. “The European monetary authorities should feel vindicated and will hold off on cutting interest rates for the time being.” Gitzel does not expect the restrictions to be relaxed until the middle of the year monetary policywhen inflation levels are close to the ECB inflation target.
After temporarily gaining ground, the euro gave up its gains in the late afternoon. In the USA, the number of job vacancies unexpectedly increased in December. This could be a signal that the labor market will continue to be robust. This would speak against an imminent rate cut by the US Federal Reserve. The Fed will announce its interest rate decision on Wednesday. According to economists, the key interest rate is likely to remain unchanged for the time being. However, reductions are expected later in the year.
For other important currencies, the ECB set the reference rates for one euro at 0.85628 (0.85250) British pounds, 159.97 (160.13) Japanese yen and 0.9365 (0.9339) Swiss francs. A troy ounce of gold was trading at $2,036 in London in the afternoon. That was about three dollars more than the day before.
FRANKFURT (dpa-AFX)