Euro resumed rise against some major currencies during today’s trading; Thursday, in the European session, and recorded the third daily consecutive gain against the US dollar.
The rise comes as a result of the big US dollar decline after the Federal Reserve issued yesterday its last meeting’s minutes, which weakened the probability of raising the interest rate in the next year.
It is expected that the European economy will release significant data on the industrial and service sector activity for November, which will be a clear indication of the European economy recovery in the fourth quarter of this year.
At 07:55 GMT, the US dollar has been traded at 1.1835 against the Euro, rising by 0.1% from the opening level at 1.1821. The currency pair hit a high of 1.1839 and a low of 1.1813.
At the end of yesterday’s trading, Euro rose against the US dollar by 0.7% for the second consecutive day and recorded the largest daily gain in a week, as market fears decreased about the growing gap between monetary policy in the US central bank and that of Europe central banks.
The Federal Reserve released yesterday its latest meeting’s minutes, which showed clear division and debate among the bank members about the future of monetary policy in light of the low inflation rates, and showed the importance of focusing on the economic data when determining the timing of raising the interest rates in the future, which raised doubts about the prospects of raising the interest rates in 2018.
The European economy is expected to release significant economic data about the performance of the industrial sector and the service sector during November, which will be a clear indication on the European economy improvement during the fourth quarter of this year. It is worth mentioning that these sectors have recorded in October its highest levels over six years.
At 08:00 GMT, the initial reading of the Industrial and Service sectors’ Purchasing Managers Index of November will be released in different European regions. Data of the whole German and European economies will be focused on.
Markets expect today the release of the European Central Bank’s minutes of the last meeting held on 25-26 October, which is expected to address the future of monetary policy, especially the stimulus program thereof. It is worth mentioning that the previous meeting concluded the necessity of increasing the stimulus program term for additional nine months, starting from January to September, and reducing the value of the program from 60 billion euros per month to 30 billion euros per month.