The euro rose in the European market on Monday against a basket of global currencies, continuing its recovery for the second consecutive day from a two-month low against the U.S. dollar, as fears of a widening interest rate gap between Europe and the US eased.
Federal Reserve Chairman Jerome Powell’s comments have boosted the prospects of a halt in monetary tightening in the US and the end of the current U.S. rate hike cycle, putting pressure on the U.S. dollar’s foreign exchange rate.
The euro rose against the USD by 0.25% to $1.0830, from the opening price of trading at $1.0805, and recorded the lowest level today at $1.0795.
On Friday, the euro rose by 0.3% against the dollar, in the first gain in the last four days, after recording earlier in the trading the lowest level in two months at $1.0760.
In terms of last week’s trading, the European currency lost nearly 0.5% against the Dollar in the second consecutive weekly loss, as purchases of the United States currency increased as the best available investment.
Investors are awaiting tomorrow, Tuesday, the release of data on the main sectors in Europe during May, to reassess the performance of the European economy during the second quarter of this year. More positive data is in favor of economic resilience and supports the euro exchange rate.
Recent data in Europe shows the extent of flexibility that takes place during the first half of this year, which enhances the chances of the ECB continuing to raise interest rates during June and July meetings.