The euro appreciates slightly, but remains below parity with the dollar

The euro appreciates slightly, but remains below parity with the dollar
The euro appreciates slightly, but remains below parity with the dollar

The US dollar weakened slightly against the euro and the British pound in foreign exchange trading on Friday morning, while remaining relatively flat against the Japanese yen. The common European currency remains below par with the US dollar.

The ICE index, which shows the dynamics of the US dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), today lost 0.18%, and the broader WSJ Dollar Index – 0.06%. At the same time, the dollar indicator remains close to a 20-year peak and may show growth for the third consecutive week, writes Trading Economics.

Today at 10 am Bulgarian time, the market exchange rate of the common European currency is 0.9975 dollars per one euro compared to 0.9948 dollars per euro at the close of the previous session.

The US currency was trading at 140.22 yen per dollar against the Japanese dollar at the same time, up from 140.20 yen per dollar at the close of currency trading yesterday.

The British pound sterling rose slightly this morning by 0.02% and for one pound today on the market they give 1.1548 dollars.

On Thursday, the dollar found strong support and rose against global currencies to near twenty-year highs. Such dynamics, especially for the dollar against the yen, were linked to expectations that the US Federal Reserve system would continue to keep interest rates high to curb inflation. According to the CME Group, 74% of analysts expect a rate hike in September – again by 0.75 percentage points, to 3-3.25% annually.

At the same time, the Bank of Japan continued to adhere to loose monetary policy, leaving the interest rate at negative level at its meeting in July.

Later in the trade, markets await the release of US labor market data in August. Analysts believe that unemployment in the country has remained at the level of July – 3.5%, and the number of jobs in the non-agricultural sectors of the economy of the country has increased by 300 thousand after an increase of 528 thousand in the previous month. This statistic is one of the most important indicators for the Fed when deciding whether to raise the key interest rate.

Analysts admit that strong macro statistics could lead the US central bank to continue raising interest rates next year. “Markets may start raising mortgages and interest rates in February (2023 – ed) if price pressures show no further signs of easing since the September 13 inflation report,” said Edward Moya, an analyst at OANDA. quoted by Agence France-Presse.

The article is in bulgaria

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