Forex: The Euro fell below $1.06 after strong US data by dpa-AFX


© Reuters.

Frankfurt (dpa-AFX) – The euro got here below some strain towards the US greenback on Thursday. Within the afternoon, it fell beneath the lately noticed stage of $1.06, which has been supporting the euro for a number of days. The euro was final quoted at $1.0593. The European Central Financial institution (ECB) has set the reference fee at $1.0633 (Wednesday: $1.0636). Thus, the value of the greenback is 0.9405 (0.9402) euros.

Within the afternoon, robust US financial information supported the greenback and weighed on the euro in flip. The US financial system grew considerably extra strongly than beforehand identified in the summertime. Based on the Ministry of Commerce, progress is especially based mostly on exports and client spending. As well as, the variety of preliminary weekly jobless claims rose lower than anticipated.

As well as, financial coverage has remained centered on the international alternate market. The Vice President of the European Central Financial institution, Luis de Guindos, confirmed the central financial institution’s intention to additional increase rates of interest considerably. Spanish every day Le Monde mentioned 0.5 share level will increase ought to initially change into the usual velocity. This tempo will possible be maintained for some time. Whereas the steps taken to date have an effect on inflation, extra must be accomplished.

In the meantime, the British pound continued to weaken towards different main currencies. The UK financial system contracted considerably greater than beforehand identified in the summertime. The event was primarily burdened by the poor efficiency of commercial manufacturing. The development sector additionally contracted. The end result was solely barely supported by the providers sector.

Forex skilled Ulrich Leuchtmann of Commerzbank (ETR:) writes that the current weak spot within the British pound is no surprise. In spite of everything, many essential international locations are pursuing an expansionary fiscal coverage. Nonetheless, the British Statistics Workplace lately introduced a surprisingly excessive stage of borrowing, which added strain on the nationwide forex.

For different essential currencies, the European Central Financial institution has set reference charges for one euro at 0.88243 (0.87651) British kilos, 140.42 (140.29) Japanese yen and 0.9852 (0.9836) Swiss francs. The troy ounce was buying and selling at $1,796 in London this afternoon. That was about $18 lower than Wednesday.

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