Euro struggles against dollar as attention turns to Fed

12:08 • 21.08.19
Economy

The euro struggled to make headway against a resilient dollar on Wednesday and was stuck near $1.11, with forex markets mostly calm ahead of a crucial meeting of central bankers later this week, Reuters reports.

With markets rushing to price significant easing from central banks in the United States and Europe, the outlook for euro/dollar will depend largely on whether or not policymakers live up to those expectations.

Officials from major central banks will gather at Jackson Hole, Wyoming, on Friday with markets focused on a scheduled speech by Federal Reserve Chair Jerome Powell.

His comments are of particular interest after last week’s inversion of the US yield curve - widely regarded as a recession signal - boosted expectations the Fed would lower interest rates at its September policy meeting. Faced with rising risks to the US economy, the central bank in July cut rates for the first time since the financial crisis.

“In the big scheme of things, markets are relatively range-bound, with the focus on Jackson Hole later this week,” said Manuel Oliveri, a strategist at Credit Agricole.

The euro was last down 0.1% at $1.1092 EUR=EBS. The dollar, measured against a basket of currencies, rose 0.1% to 98.265 .DXY.


Oliveri expects the euro to strengthen toward $1.12 by September, even though the European Central Bank will struggle to exceed investor expectations for cutting rates.

Talk of more fiscal spending in Germany, and the hit to the U.S. yield advantage from falling interest rates, should support the euro, he added.

“Fiscal stimulus is a positive for the currency,” he said.

The dollar has also been supported by talk of more spending - President Donald Trump said on Tuesday his administration was considering potential tax cuts on wages as well as profits from asset sales.

LATEST NEWS

Videos

15:20 • 24.05.21

Interview with Francis Malige, EBRD Managing Director

11:39 • 24.04.21

Armenians Commemorating 106th Anniversary of Genocide

09:40 • 23.04.21

Biden Under Pressure to Recognize Armenian Genocide - KTLA 5 News

15:34 • 22.04.21

Governance and Oversight Capacities Account for Our Bank's Robust Management System - Philip Lynch, Independent Board Member at Ameriabank

14:09 • 21.04.21

'Mr. President, It Is Now in Your Power to Right Decades of Denial' - US Congressman Adam Schiff Urges Joe Biden to Recognize Armenian Genocide

12:37 • 03.04.21

Armenians of Nagorno-Karabakh in Despair After Trauma of Military Defeat - France 24

17:33 • 11.03.21

Interview with Kakhaber Kiknavelidze, an Independent Member of Ameriabank Board of Directors

17:57 • 26.01.21

Only Terrorists Keep Hostages, Putting Forward Preconditions for Their Release - Edmon Marukyan

13:33 • 22.01.21

Rep Adam Schiff Says Congress Should Recognize Artsakh

09:42 • 29.12.20

UN's Guterres Issues Global Appeal to Make 2021 'Year of Healing'

18:41 • 24.12.20

NASA's Mars 2020 Perseverance Rover Landing Animations

13:33 • 31.10.20

Azerbaijan Uses Prohibited Phosphorus Chemical Munitions - Defense Army Video

16:37 • 30.10.20

Artsakh Defense Army Units Neutralizing Azerbaijani Arms Supplies

11:25 • 28.10.20

Artsakh Defense Army Units Neutralizing Azerbaijani Drone

13:45 • 24.10.20

Nagorno-Karabakh's Status Has Been At the Heart of Our Approach - Zohrab Mnatsakanyan

11:51 • 24.10.20

Artsakh Defense Army Releases Video Featuring Damaged Azerbaijani Military Equipment

11:40 • 24.10.20

Artsakh Defense Army Units Inflicting Manpower Losses on Azerbaijan

10:39 • 24.10.20

Gas Pipeline Damaged in Azerbaijani Fire Targeting Nagorno-Karabakh's Capital

12:41 • 23.10.20

President Armen Sarkissian Meets Emmanuel Macron at Élysée Palace

12:16 • 23.10.20

Artsakh Defense Army Neutralizes Azerbaijani Military Hardware

12:02 • 22.10.20

Artsakh Defense Army Units Neutralizing Azerbaijani Military Infrastructures

10:35 • 22.10.20

President Armen Sarkissian Meets with NATO Secretary-General in Brussels

10:51 • 17.10.20

Buildings and Homes Lying in Ruins in Nagorno-Karabakh's Capital After Azerbaijani Shelling

15:09 • 15.10.20

Artsakh Defense Army's Precision Fire Gives Deadly Blow to Enemy

13:13 • 13.10.20

Artsakh Defense Army Units Destroying Azerbaijani Tank

12:56 • 12.10.20

Zohrab Mnatsakanyan: Ceasefire Does not Mandate Azerbaijan to Kill Civilians and Hit Civilian Settlements

12:23 • 12.10.20

Armenians Protest Outside Turkrish Embassy in Los Angeles

17:23 • 09.10.20

Losses in Azerbaijan's Military Featured in Defense Army Footage

15:53 • 09.10.20

Artsakh Defense Army Neutralizing Adversary's Transport Column

14:11 • 09.10.20

Turkey openly backs Azerbaijan 'far more aggressively than in the past' - ABC News on Syrian mercenaries fighting in Karabakh

15:52 • 08.10.20

Iconic Armenian Church Hit in Azerbaijani Attacks in Nagorno-Karabakh City (photos)

10:57 • 08.10.20

Artsakh Defense Army Continues High-Precision Strikes

14:24 • 07.10.20

War Situation in Karabakh on European Parliament's Agenda

19:31 • 05.10.20

Call for Urgent Action: Armenian Journalist Brings Intn'l Colleagues' Attention to Situation iin Artsakh After Azerbaijani Attacks

16:17 • 04.10.20

Turkey's Support to Syrian Mercenaries Fighting Against Artsakh: Facts About Azerbaijani Aggression

12:39 • 04.10.20

Nagorno-Karabakh's Capital Under Azerbaijani Strikes

13:49 • 03.10.20

Armenian Armed Forces Neutralize Azerbaijani Defense Positions

10:12 • 29.09.20

ArmenianTroops Destroy Azerbaijani Armored Fighting Vehicle on Frontline

23:42 • 28.09.20

There is a solid evidence that Azerbaijan has launched a thoroughly planned attack on the NKR

18:45 • 28.09.20

EU calls for Immediate End to Hostilities over Nagorno-Karabakh

Show all

Most popular articles Today Yesterday For a week

Politics

Law

Economy

Event

Press digest

Science/tech

Sports

Culture

Entertainment