Euro rises from three-month low as investors await ECB meeting

The euro rose from a three-month low against the dollar on Thursday,
as investors awaited the upcoming European Central Bank meeting.

Topic

The Euro

The Euro

The euro rose 0.21% to $1.0752, extending gains from a low of $1.0686 last week, its lowest since mid-June.

Its last rise was to $1.0736, with major moves being restricted by the upcoming ECB meeting.

Expectations for the meeting are split between a pause and a 25 basis point rate hike,
with market pricing leaning towards a rate hike.

“Looking at market pricing, the euro will fall more if the ECB keeps rates unchanged compared to rising if rates are hiked,” said Christina Clifton, foreign exchange strategy and economics analyst at the Commonwealth Bank of Australia.

Clifton added that the ECB will also release an updated set of economic forecasts,
and the ECB’s views on how quickly inflation will fall will guide the market on how much further tightening is likely.

Elsewhere, the pound sterling was flat at $1.2486, the Japanese yen rose 0.1% to 147.29 per dollar,
and the Swiss franc held steady at 0.8934 per dollar.

The Australian dollar rose 0.54% to its highest level since September 5 at $0.64545 after data showed the economy added 64,900 jobs in August.

The Swedish krona briefly touched a new all-time low of 11.967 per euro after data showed the pace of Swedish core inflation slowed more than expected in August.

Euro rises from three-month low

Euro rises from three-month low

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