Currencies: the euro continues its tumble against the dollar

[ad_1]

Violent fall…






Photo credit © Ibrahim Boran / Unsplash

(Boursier.com) — What a plunge! Above $1.1150 at the start of the week, the euro fell by another 0.55% this Friday and found itself below the $1.10 mark, on a seven-week low. The European currency is on the verge of recording a sixth consecutive session of decline against the greenback, its longest bearish streak since April. Selling pressure on the single currency accelerated after the publication of very robust employment figures in the United States.

Data which reinforces expectations of a soft landing for the world’s largest economy and rules out the possibility of a half-point rate cut from the Fed next month. “Today’s data was a grand slam: employment numbers are strong, revisions are positive and unemployment is down,” Lindsay Rosner, head of multi-sector investing at Goldman, told ‘Bloomberg’ Sachs Asset Management.

Conversely, after the announcement of a very sharp slowdown in inflation in the euro zone and taking into account still depressed PMI indices, the markets are anticipating a much more aggressive posture from the ECB. Operators are now counting with a 90% probability of a further reduction in ECB rates this month.


©2024 Boursier.com




[ad_2]

Source link -87