©Reuters. The euro recovers 1.05 dollars after the figures of the US economy
Frankfurt (Germany), Apr 28 (.).- The euro fell this Thursday below the level of 1.05 dollars, its lowest value since January 2017, due to the energy crisis between Russia and the European Union (EU), but it rose somewhat after the figures for the US economy were published.
The euro was trading around 3pm GMT at $1.0515, versus $1.0520 in late European forex trading the previous day.
The European Central Bank (ECB) set the reference exchange rate for the euro at 1.0485 dollars.
“The euro is collapsing, along with other currencies in the European periphery, after a further intensification of the energy crisis in Europe,” comment analysts at Monex Europe.
Fears around the euro are mounting as markets weigh the risk that supplies will be cut off to more and larger economies in the eurozone itself, potentially creating a growth crisis.
This Thursday it was learned that year-on-year inflation in Germany shot up to 7.4% in April, its highest level in more than forty years, mainly due to the war in Ukraine.
The United States economy contracted 0.4% in the first quarter of the year compared to the previous three months, as a result of the rebound in covid-19 cases due to the omicron variant and high inflation.
Expectations of higher returns in the US leave the dollar in the first position of the currency markets at the moment, but the figures for the first quarter show a greater contraction than expected.
The volatile conditions of the fixed income and variable income markets increase the flows towards the dollar, “at a time when the markets seek refuge from an environment of hesitant growth and high inflation”, according to Monex Europe.
The single currency was traded in a trading band between 1.0471 and 1.0565.