The European currency is looking to push the last positive forces it can before heading to what most analysts call as the ‘worst week’ the currency have experienced since October last year. The global stock market sell-off continues to drown the euro’s price and the surging dollar in the market continues to attract investors after having a lackluster first month of the year.
Furthermore, the greenback continues with its comeback as it continues to move away from the massive performance slump they have last January. The dollar continues to buoy itself higher as the local wage inflation blossoms.
The euro was still trading on the greener side on the earlier sessions; the currency saw an incremental increase of about 0.2% at $1.227, after having a massive slump on the previous session and dipping by a total of 1.47%. The massive price shed comes from the surging dollar and the massive global market sell-off. The trend is expected to continue and will pair with last year’s October price.
All-in-all, the euro continues to keep an outstanding and excellent performance in the market as it tallies a massive 2.28% increase this year. The currency also managed to hit a massive 3-year high, touching the $1.2538 figures in the previous month.
Most investors continue to put their eggs on the euro basket prior to this week, and the weaker dollar last month continues to buoy the euro prices higher and the high anticipation for the European economy also pushes the currency higher. The European Central Bank announcement regarding its interest rate hike is also a viable factor for the surge.
On the other hand, the dollar managed to step on its gas today as it speeds fast major currencies; the greenback continues to note great figures as it continues a massive 1.1% increase against a basket of major currencies. The greenback is looking to cover massive grounds as it tallies a whopping 2.1% decrease against other currencies this year.
The dollar prices are highly affected by the slumping performance of euro today; furthermore, the rising U.S. wage inflation continues to create a massive buzz on the market. Analysts Jane Foley noted that “I think this is actually a very interesting time for the dollar because we have yields potentially pushing higher in the U.S., which should be dollar-positive and also if there is a re-assessment of risks ... then there could be additional demand for dollars,”
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