In its climb the euro currency also reaches annual highs in its crossing with the pound, to the edge of ninety pence.
The start of August, the holiday month par excellence, does not put a stop to the momentum of the euro. The Community currency, moreover, not only increases its highs against the dollar. The rises extend to crosses with European currencies such as the pound and the Swiss franc.
The change in the euro today renewed its highs since January of 2015 against the dollar, increasingly closer to the level of $ 1.19. In previous weeks several analyst firms revised upwards their expectations of the euro against the dollar, with valuations above even $ 1.20.
As with the dollar, the euro is at its highest levels in two and a half years against the Swiss franc. The Swiss currency, one of the most traditional shelter assets, deflates to the edge of 1.15 units per euro. Far from it is the parity with the euro that led the Swiss National Bank in January 2015 to intervene in the market to correct the ‘overvaluation’ of its currency.
The succession of highs of more than two years against the dollar and the Swiss franc contrasts with the blockade that registers the change of the community currency against the pound. In recent times the euro has frozen just below the 90 pence barrier. In today’s day, the euro touches the annual highs it achieved last July 21, when it touched 89.94 pence.
Containment in inflation figures in the eurozone have not cooled expectations of an upcoming change in the monetary policy of the European Central Bank. The greater solidity of the economy and the smaller political uncertainties point to a withdrawal in the program of purchase of debt. At yesterday’s session, the eurozone’s GDP grew faster, from 1.9% previously to 2.1% year-on-year.
The direction of the monetary policy of the Federal Reserve now has more unknown, in part by the constant controversies that generates Donald Trump. The gaps open within their own party raise doubts about the viability of the promised economic reforms, and by extension, they cool expectations of inflation and additional interest rate hikes.
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