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© Reuters. The euro moves around 1.0550 dollars
Frankfurt (Germany), March 8 (.).- The euro moved this Wednesday in a very narrow band around 1.0550 dollars after stabilizing after falling to its minimum value since the beginning of January because the Federal Reserve (Fed ) may accelerate interest rate rises in the US.
The euro was trading around 4:00 p.m. GMT at $1.0555, compared with $1.0605 in the final hours of European currency market trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at $1.0545.
The euro barely reacted to the US labor market figures.
The private sector created 242,000 jobs in the US in February, according to ADP data.
The euro snapped its bullish streak on Tuesday after Fed Chairman Jerome Powell said interest rate hikes were likely to accelerate beyond what was initially expected given the strength of the US economy.
The job creation data supports this robustness and shows that the labor market is very strong.
The Fed’s interest rates are between 4.5 and 4.75% and could exceed 5.75% this summer if the US labor market remains strong and inflation is very high, as prices begin to be discounted. markets.
The ECB will raise its interest rates next week, probably by half a percentage point, to 3.5%, and the deposit facility, to 3%.
The single currency was exchanged in a fluctuation band between 1.0525 and 1.0573 dollars.
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