Euro Weakens On Rate Hike, Recession Worries
01 Septiembre 2022 - 01:13AM
RTTF2
The euro was lower against its most major counterparts in the
European session on Thursday, as European markets fell, tracking a
sell-off on Wall Street and in Asia, as investors continued to
worry about higher interest rates and the risk of a recession.
Cleveland Federal Reserve President Loretta Mester said that the
fed funds rate will be required to rise above 4 percent by early
next year.
Mester added that she does not anticipate the Fed cutting
interest rates in 2023 and that rates would remain elevated "for
some time."
The CME Group's FedWatch is suggesting a 72.5 percent chance of
a 75 basis point rate hike this month.
Money markets now expect a 75 basis point interest rate hike
from the European Central Bank at next week's meeting in the
aftermath of yesterday's record-high inflation data.
The euro dropped to 0.9774 against the franc, off an early high
of 0.9835. Next likely downside target for the currency is seen
around the 0.965 level.
The euro reversed from a prior 2-month high of 0.8663 against
the pound and weakened to 0.8629. The euro is seen finding support
around the 0.85 level.
The euro fell to 139.48 against the yen, 1.6392 against the kiwi
and 1.4654 against the aussie, from its early multi-week highs of
140.00, 1.6477 and 1.4741, respectively. The next possible support
for the euro is seen around 135.00 against the yen, 1.61 against
the kiwi and 1.34 against the aussie.
In contrast, the euro climbed to 1.3245 against the loonie, its
highest level since August 10. The currency is likely to locate
resistance around the 1.34 level.
The euro rebounded modestly against the greenback, with the pair
trading at 1.0030. If the euro rises further, 1.08 is possibly seen
as its next resistance level.
Looking ahead, Canada building permits for July, U.S. ISM
manufacturing PMI for August and construction spending for July are
set for release in the New York session.
Euro vs CHF (FX:EURCHF)
Gráfica de Divisa
De Nov 2023 a Dic 2023
Euro vs CHF (FX:EURCHF)
Gráfica de Divisa
De Dic 2022 a Dic 2023
