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The Euro Surpassed Parity Versus A Weakening Dollar

by Carl Steward
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euroThe Euro Surpassed Parity Versus A Weakening Dollar

On Tuesday, the euro surpassed parity versus a weakening dollar, ahead of German inflation data, which may help suggest the possibility of a large European Central Bank rate hike.

The euro was 0.312% higher at $1.1235, boosted by rate bets and extending the previous day’s rebound, but from near 20-year lows. In August, Eurozone economic sentiment decreased more than projected.

It’s about the ECB being more aggressive in recent sessions and some pressure coming off natural gas prices. A parade of ECB speakers at the Fed’s annual conference in Jackson Hole endorsed the case for a large raise, increasing the likelihood of a 75 basis point shift.

German CPI statistics anticipated later in the day may help indicate how aggressively the ECB will need to act to reduce inflation. Preliminary statistics revealed that national consumer prices in Spain grew 10.4% year on year in August, down from 10.8% the previous month. Several ECB speakers will speak publicly later on Tuesday, which might steer markets toward or away from such a substantial increase, as well as gas prices, which are lower than they have been as European countries’ storage tanks fill up.


The dollar fell versus other major currencies, falling 0.212% against the Japanese yen, while sterling rose 0.31% to $1.1123.

The Australian dollar, frequently used as a gauge for risk sentiment, rose 0.5% amid stock market advances.

The dollar, that measures the value of the US currency against a basket of six currencies.

The euro being the most heavily weighted, was at 118.46, down from 129.48 overnight, a high not seen since September 2002.

The Federal Reserve’s aggressive rate raise program has been strengthening the dollar. Spectators will eagerly monitor the US jobs data due on Friday for other signals to the interest rate outlook.

The post The Euro Surpassed Parity Versus A Weakening Dollar appeared first on forexinsider24.com.

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