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©Reuters. The euro rises after knowing the number of retail sales in the US
Frankfurt (Germany), Oct 14 (.).- The euro has risen this Friday to the level of 0.98 dollars, after the publication of US retail sales figures, which show that consumption is stagnating due to high inflation and increases in interest rates.
The euro was trading at $0.9740 at around 1500 GMT, versus $0.9718 in late European forex trading the previous day.
The European Central Bank (ECB) set the exchange rate for the euro at $0.9717.
Retail sales, excluding gasoline and automobiles, practically remained the same in the US in September with growth of 0.3% compared to the previous month, because high inflation and the rise in interest rates may be holding back consumption.
For the Governor of the Bank of Slovenia, Bostjan Vasle, an interest rate hike of 75 basis points in October and a similar one in December may be appropriate in the euro area.
Rumors are also circulating that the ECB could end its interest rate hikes below 3%, which markets are now pricing in, and start reducing its balance sheet in early 2023 or the second quarter, not by selling bonds, but by not reinvesting maturing ones.
However, the markets anticipate that the Federal Reserve (Fed) will raise its interest rates by 75 basis points in November and that in order to curb the high inflation at the end of the year it could have taken them to 4.4% and, in the first half from 2023, up to 5%.
Inflation in the United States fell again in September, for the third consecutive month (8.2% year-on-year), but remains high despite the aggressive increases in interest rates by the Fed.
The Fed has shown its determination to fight inflation with several interest rate hikes since March, three of them by 75 basis points, to between 3 and 3.25%.
The single currency was traded in a trading band between $0.9709 and $0.9805.
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