Euro hovers near nine-month high ahead of major European data

Economies.com
1 week ago

Euro rose in European trade against dollar for the fifth straight session, almost hitting nine-month highs on European interest rate prospects. 

 

The gains come ahead of an important batch of European data in January, which will provide important clues on the strength of the economy in the first quarter. 

 

EUR/USD rose 0.25% to 1.0898, with a session-low at 1.0866, after closing up 0.2% yesterday, the fourth profit in a row, hitting nine-month highs at 1.0925 following bullish remarks by ECB officials. 

 

Bullish Remarks

 

ECB officials strongly hinted in recent remarks at successive 0.5% rate hikes in February and March and beyond.

 

ECB President Christine Lagarde said in the Economic Forum in Davos that inflation remains too high, and the ECB will continue hiking rates until inflation is brought back to 2%.

 

European Rates

 

Markets now widely expect the European Central Bank to increase interest rates by successive 0.5% hikes in upcoming meetings to control inflation. 

 

Data

 

Now investors await a batch of important data later today on European manufacturing and services sectors for January, important for gauging the health of the economy in the first quarter of the year. 

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