The euro strengthened across the board on expectations that the European Central Bank will continue its credit tightening process to curb rising inflation. The single currency climbed from 1.3450 to close to 1.35 versus the dollar on Monday.
The ECB is widely expected to lift rates from 3.75% to 4% at its monetary policy meeting on Wednesday. Moreover, the central bank may need to raise rates two more times to 4.5% this year as the euro zone economy grows steadily.
The dollar was little changed following mixed US manufacturing data today. US factory orders fell from 3.1% to 0.3% in April, far below the estimate of 0.7%. The durable goods orders were revised from 0.6% to 0.8%, better than the expectation of 0.6%.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment