Nerdware App | Foreign exchange: Euro moves away from three-year high
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Foreign exchange: Euro moves away from three-year high

Foreign exchange: Euro moves away from three-year high

The euro fell slightly on Friday. At noon, the common currency cost $ 1.2050, slightly less than in the morning. On Thursday, the euro had risen towards a three-year high, but had narrowly missed. The European Central Bank (ECB) had set the reference rate on Thursday at $ 1.2065.

There was talk of a countermovement on the market after the euro had risen significantly recently. However, better than expected data from France and Germany supported the common currency on Friday. Sales in German retail sales rose significantly in November, while the consumer sentiment in France had surprisingly improved in December. On the other hand, new inflation data from the eurozone did not help the euro. On the contrary, core consumer prices increased more slowly than expected. “An increase in core inflation can still be expected,” commented analyst Ralf Umlauf of Helaba. Core inflation, which excludes fluctuating price components, is considered to be an important indicator of basic price developments. The ECB is also paying close attention to them and keeps their monetary policy loose because of what they see as low inflation. In the afternoon trade, American economic data takes center stage. The government publishes its monthly report on the labor market and wage developments. Investors are likely to look at the latter size, as weak wage pressure is a major factor behind US unusually weak inflation. This keeps the US Federal Reserve from accelerating interest rate hikes.