Euro rose at European Markets on Thursday against a basket of world currencies


Euro rose at European Markets on Thursday against a basket of world currencies, continuing recovery for the second day in a row, against the US dollar. The Euro recorded its lowest level over four months against the dollar, on Tuesday, pushed by concerns about deepening the gap between monetary policies in Europe and the United States, especially after The European bond purchase program is extended and the prospective raising of the US interest rates for the third time this year. Investors await the EU’s economic outlooks of growth and inflation in the region for two years, which are expected to be released later today.

 

Euro was up 0.1% against the US dollar as of 07:59 GMT, trading at $ 1.1605, the today’s trading opening price was $ 1.1594, the highest $ 1.1615 and the lowest $ 1.1585.

 

Euro ended yesterday’s trading up 0.1% against the US dollar, in a first gain in four days, by dint of recovery processes, from a four-month low of $ 1.1553, as the greenback rising halted against most other major currencies.

 

Euro has lost more than 2.5% against the US dollar since the beginning of last September trading as a result of the mounting concerns about the gap between the course of monetary policies in Europe and that of the United States, especially in view of strong expectations of the continued tightening of US monetary policy and raising the interest rates for a third time this year.

 

The Central Bank of Europe decided at the end of last month to extend its bond-purchase stimulus program for another nine months. The bank stated that it would start reducing the monthly program value by half to 30 billion euros from January to September 2018. The bank let the choice of new extensions available until the inflation target is achieved.

 

ECB Governor, Mario Draghi, said there was still a need for the continuance of monetary stimulus, especially as the inflation course showed no sign of sustained upward trend.

 

Consumer price data in Europe in October showed a fall in contrast to expectations, which already confirms the weakness of the path of European inflation, and the need for the economy to further monetary stimulus until the recovery of the path and the achievement of inflation target at 2%.

 

Investors are looking forward to the release of the European Commission’s report on the economic outlooks in the region for two years. If the inflation expectations are weak, the unified European currency will be negatively affected and fall again against most currencies, especially against the US dollar.

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