© Reuters. The euro recovers $ 1.16 after data from the US economy
Frankfurt (Germany), Oct 27 (.) .- The euro has recovered today to 1.16 dollars after the publication of data from the US economy, which shows an increase in the US trade deficit in September and a fall of durable goods orders.
The euro was trading around 3:00 pm GMT at $ 1.1595, compared to $ 1.1594 in the last hours of the European currency market trading the previous day.
The European Central Bank (ECB) set the benchmark exchange rate for the euro at $ 1.1617.
In addition, dollar purchases have fallen after the yield on US Treasury debt fell to 1.58%, the lowest level in two weeks.
Durable goods orders in the US fell 0.4% in September from the previous month.
The US trade deficit increased in September to $ 96.3 billion ($ 89.4 billion in August).
Markets will pay attention to tomorrow’s Governing Council meeting.
Ostrum AM’s global strategist, manager of Natixis (PA 🙂 Investment Managers, Axel Botte, comments: “Keep in mind that the main announcements may not be released before the December meeting, but Christine Lagarde should offer some kind of political guidance.”
Furthermore, adds Botte, this ECB meeting will take place a week before the FOMC meeting, in which the US monetary policy makers will likely announce the start of the reduction of monetary stimulus.
The Bank of England is leaning towards a rate hike in November, despite some dissonant voices within the Monetary Policy Committee.
The single currency was changed in a fluctuation band between 1.1585 and 1.1626 dollars.
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