The euro rose to the highest level against the dollar since to its highest level against the dollar since late July. This is particularly attributed to signals from the US Federal Reserve that it will move to to cut rates. This was reported by UNN with reference to Bloomberg.
Details
In the morning, the common currency rose to $1.1054, the highest level in almost five months. months. The euro has risen by more than three percent this year, depending on depending on the fluctuations.
The dollar extended losses this month after the Fed gave its clearest signal yet that its aggressive rate hiking campaign is over. The likelihood that the Federal Reserve Bank will cut interest rates before the ECB next year, is increasing.
Most market participants expect the Fed to cut interest rates for the first time in March and for the second time in May after the central bank raised interest rates the fastest in two years. It is indicated that the dollar is suffering from such developments, as the prospect of lower interest rates hurts the the attractiveness of bonds in the United States.
Japan is the third largest donor of financial aid to Ukraine: in 2023, the budget received $3.7 billion - Ministry of Finance
Addendum
According to Helen Given, currency trader at Monex USA, the euro's growth may be limited.
The holiday rally will fade a bit in the first quarter. The euro looks rather overbought, and with the German economy on the brink, it seems that the danger of a regional recession is a bit higher there than here in the US
Recall
Despite wages outpacing inflation, the general forecast of economists points to weak growth in the Eurozone, while the risks of geopolitical instability risks remain.