Euro rose to a monthly peak

13.03.2017

On Monday, euro rose in price against the dollar to a monthly high amid the ECB report, which hinted on the possibility of raising the interest rate even before the end of the financial stimulus program.

EUR/USD hit a high at 1.0715, the highest since February 9, and then returning to 1.0683.

The single currency gained support after Reuters reported that some ECB officials are predicting an increase in the interest rate compared to the current minimum level before the end of the financial incentive program.

The growth of the euro is limited by the confidence of market players that the Fed will raise the interest rate as a result of the two-day meeting that will end on Wednesday.

Published on Friday, the report on employment in the US had little effect on confidence in the upcoming interest rate increase.

The US Department of Labor reported a steady increase in the number of jobs last month. Salaries have also grown, but not as quickly as some economists had expected.

Markets consider the probability of an interest rate increase as a result of the next FOMC meeting at 90%.

The US dollar index, which shows the purchasing power of the dollar against the trade-weighted basket of six major currencies, dropped 0.26% to 101.12 at the time of writing, recovering from a fall to a two-week low of 100.86.

The dollar fell against the yen: USD/JPY fell 0.12% to 114.66 after Friday's high at 115.49.

The pound rose in price against the dollar and the euro: GBP/USD increased by 0.41% to 1.2219, rebounding from the minimum for eight weeks, recorded last week.

EUR/GBP dropped 0.5% to 0.8735 before the UK enters into force Article 50 of the Lisbon Treaty (formally launching the withdrawal procedure from the European Union).

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