On Tuesday, the euro continued its gains from the day before, reaching its highest level in more than two months. Last night, the value of the common currency rose to $1.0916. This is the highest price since March 21. This morning the euro was trading at $1.0910.
The European Central Bank (ECB) set the reference interest rate on Monday at 1.0842 (Friday: 1.0852) dollar. In New York, the euro was trading at $1.0898 around 9 p.m. on Monday.
Weak US economic data
The euro was supported by weak US economic data. The mood among US industrial companies surprisingly deteriorated in May, increasing speculation in the currency market that the US Federal Reserve would cut interest rates. This put pressure on the dollar.
As the day progresses, investor interest remains focused on US economic data. Data on new orders in US manufacturing is expected in the afternoon, which could boost the currency market.
Tension in the run-up to the ECB’s interest rate decision
In addition, attention is increasingly focused on the ECB’s interest rate decision. The central bank is widely expected to cut interest rates on Thursday.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
