The euro has fallen nearly 8% in three months, hurt by expectations the ECB would be the last major central bank to raise interest rates after it downplayed inflation for months and argued temporary factors were behind it. of the increase.
The euro strengthened 0.3% against the dollar at $1.13050 after the data was released, as investors gauged the chances of the ECB signaling a faster path for policy tightening at its meeting. from Thursday.
Ulrich Leuchtmann, head of foreign exchange at Commerzbank, said the money market was now pricing in an ECB rate hike for the final quarter of the year.
In the short term, the impact on the euro will depend on what ECB President Christine Lagarde has to say tomorrow, he said.
The dollar, meanwhile, retreated from a 19-month high hit last week as Federal Reserve officials warned against potentially aggressive rate hikes this year.
A string of Fed officials said the US central bank would raise interest rates in March but spoke cautiously about what might happen next, signaling a desire to keep options open given the uncertain outlook for inflation.
Against a basket of currencies, the dollar was down for a third day, dipping 0.25% to 96.015, with a rally in global stock markets undoing some of its charm as a haven asset.
By Joice Alves, from Reuters agency
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
