This is why the euro cannot keep its profits | 02.07.20

The euro temporarily broke above the $ 1.13 mark on Thursday, but failed to hold gains.

After a daily high of $ 1.1303, the common currency, the euro, fell back to $ 1.1240 by late afternoon. It cost a little less than in the morning. The European Central Bank (ECB) set the reference rate at $ 1.1286 (Wednesday: $ 1.1200). The dollar thus cost 0.8861 (0.8929) euros.

In the morning, the euro initially benefited from a friendly mood on the financial markets. The dollar as a safe haven was therefore less in demand. On the one hand, hopes of a corona vaccine contributed to the good mood. On the other hand, solid economic data from the USA create a good mood, although the impact on the dollar is not always uniform. Sometimes it gives way because market sentiment rises – sometimes it increases because the prospects for the US economy are improving.

The economic outlook dominated the foreign exchange market on Thursday afternoon. After the US government released a strong job market report, the dollar rose, causing the euro to lose ground. In June the US job market noticeably recovered from its slump in the corona crisis. However, experts remain cautious: the sharp rise in new corona infections in parts of the USA is likely to slow the further recovery, it is argued.

For other major currencies, the ECB set the reference rates for one euro at 0.90225 (0.90430) British pounds, 121.24 (120.31) Japanese yen and 1.0648 (1.0620) Swiss francs. The troy ounce Gold (31.1 grams) was trading in London in the afternoon at $ 1777. That was about seven dollars more than the previous day.

/ bgf / fba


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