Foreign Exchange: Euro just above 14-month low | 09/30/21

Frankfurt (dpa-AFX) – The euro continued to trade near its lowest level in nearly 14 months on Thursday. In the morning, the single currency was priced at $1.1605 after falling late in the evening at $1.1589, its lowest level since July 2020. The European Central Bank had set the reference rate on Wednesday afternoon at $1.1654.

The Euro has not been under pressure since only yesterday. The US dollar, which is rising in many currencies, has been weighing on the euro and other currencies for some time. The decisive factor is the US Federal Reserve’s monetary policy, which is heading towards a moderate initial tightening of the very loose interest rate. This gives the dollar a tailwind.

The British Pound did not benefit from strong growth data this morning. According to the Office for National Statistics, the country’s economy recovered more from the coronavirus pandemic in the spring than previously known. However, economic output is still well below the level it was before the outbreak of the epidemic. Experts expect a weak summer quarter as the British economy struggles with many problems, including a shortage of truck drivers and rising natural gas prices.

Several economic data is on the program on Thursday. In Europe, among others, inflation figures are expected from Germany. Macroeconomic growth data is published in the USA. A number of central bankers also spoke, including Federal Reserve Chairman Jerome Powell.