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The euro falls due to the strength of the dollar in the face of risk aversion

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The euro depreciated this Thursday due to the strength of the dollar due to risk aversion and despite the fact that some data from the US economy were worse than expected.

The euro was trading at $1.0126 as of 3:00 p.m. GMT, versus $1.0174 in late European forex trading the previous day.

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The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0178 dollars.

Second-hand home sales fell sharply in the United States in July by 5.9%, for the sixth consecutive month (-5.5% in June), but these figures did not stop the appreciation of the greenback.

Jobless claims fell in the US last week more than expected, while the industry situation in the Philadelphia region improved in August.

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These figures from the US economy were better than expected and boosted the greenback.

Despite raising interest rates by 0.75 points at their last meeting in late July, members of the US Federal Reserve’s (Fed) open market committee then recognized that it might be appropriate to slow down the frenetic rate of hikes.

“The minutes endorsed the view that the effective fed funds rate will likely end up in the 3.25-3.5% range by the end of the year,” according to analysts at Monex Europe.

The euro zone had an inflation rate of 8.9% year-on-year in July.

The single currency was traded in a fluctuation band between $1.0114 and $1.0193. (YO)

Source: Eluniverso

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