The euro on Wednesday jumped back above parity with the dollar, the US currency sliding against its main rivals on concerns over the world’s biggest economy and the prospect of slower interest rate hikes.
The euro bounced back above one dollar for the first time since mid-September, helped also by expectations of a big interest-rate hike from the European Central Bank on Thursday.
There were large gains against the dollar also for the British pound and yen, helping them recover some ground following the recent sharp losses.
The dollar retreated following “a string of negative (US) economic data released since the beginning of the week”, noted ActivTrades senior analyst Ricardo Evangelista.
Poorly received data, including slower house price growth and weaker consumer confidence, showed that big rate hikes from the Federal Reserve are “starting to open some cracks in the American economy”, he said.
“The Federal Reserve has been hiking rates aggressively in an attempt to…
Source: Guardian Newspaper
