Euro extends losses after ECB bearish remarks

Economies.com
1 month ago

Euro fell in European trade against a basket of major rivals, extending losses for the third straight session against dollar away from six-month highs on profit-taking, following somewhat bearish remarks by ECB officials, which cut chances of a 0.75% rate hike. 

 

Dollar continues to recoup on haven demand amid mounting concerns about US recession in 2023 following warnings from several major Wall Street bankers. 

 

EUR/USD fell 0.2% to 1.0443, after closing down 0.25% yesterday, the second loss in a row on profit-taking off six-month highs at 1.0595. 

 

European Rates

 

ECB officials noted today that inflation and interest rates could be near peak values, ahead of the ECB official meeting next week.

 

Such statements cut chances of a European rate hike of 75 basis points this month, and boosted chances of a 0.5% rate hike only. 

 

The Dollar

 

The dollar index rose over 0.2% today for the third straight session against a basket of major rivals off six-month lows. 

 

Such recovery come amid haven demand after several Wall Street bankers warned from recession risks next year.

 

CEOs of JPMorgan, Bank of America, and Goldman Sachs warned that inflation will threaten consumer demand, and that banks are preparing for deteriorating conditions in 2023. 

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