Foreign exchange: Eurocourse is in a tight range

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January 22, 2017
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The euro exchange rate barely moved on Thursday in US currency trading. The common currency hovered in a narrow range around the mark of $ 1.2330. Last time she cost $ 1,2333. Previously, the euro had climbed to a peak of $ 1.2352.

The dollar was under pressure across the board. The European Central Bank (ECB) had set the reference price at 1.2276 (Wednesday: 1.2312) dollars. The dollar had cost 0.8146 (0.8122) euros.

The reason for the Eurocourse gains was a consistently weaker dollar. On the market there was talk of a countermovement on the clear plus of the American currency from the previous day. On Wednesday, the dollar had benefited strongly from comments in the minutes of the Fed’s recent interest rate meeting. The note mentioned increased central bank optimism and the need for further interest rate hikes. The prospect of higher interest rates helped the dollar, but could not defend its gains on Thursday.

In European morning trading, the mood for the euro was still slightly subdued. The deciding factor was a significant decline in the Ifo business climate, albeit from a very high level. Bank economists put the damper on the recent turbulence on the stock markets and threatened punitive tariffs of the US on steel and aluminum back. In general, however, experts expect continued robust growth in Europe’s largest economy.

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