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©Reuters. The euro trades in a narrow band around $0.97
Frankfurt (Germany), Oct 12 (.).- The euro today traded in a narrow band around the $0.97 level after the release of US producer prices, which contributed to the resistance of the “green ticket” before the publication of the minutes of the Federal Reserve (Fed).
The euro was trading at $0.9677 by 3pm GMT, down from $0.9709 in late European forex trading the previous day.
The European Central Bank (ECB) set the exchange rate for the euro at $0.9706.
The Fed has shown its determination to fight inflation with three consecutive increases in interest rates of 75 basis points, between 3 and 3.25%.
The minutes could give clues as to what his next moves will be.
Producer prices rose by 8.5% year-on-year in September in the US (8.7% in August) and have an impact on consumer prices, which are what the Fed takes into account to adjust its monetary policy.
“Rumors that Germany could support a joint debt issue to deal with the energy crisis partially eased tensions over the euro,” Monex Europe analysts believe.
Now it is possible that the German chancellor, Olaf Scholz, will be more understanding.
The news immediately narrowed the spread between Italian and German 10-year sovereign bonds.
The drop in risk premiums will allow the ECB to raise interest rates more calmly.
The president of the ECB, Christine Lagarde, said today that interest rates are the most useful tool in the current circumstances, although they have begun to discuss the quantitative reduction of the balance sheet.
The single currency was traded in a trading band between $0.9675 and $0.9731.
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