The single European currency, the Euro (EUR), is still strengthening its exchange rate against major world currencies and, in particular, against the US dollar (USD). On 25 February 2021 at 11:35 am CET, the global currency pair EUR/USD traded on the international foreign exchange – Forex market at a mutual exchange rate of US$ 1.223 per EUR with the current daily strengthening of +0.55% against the USD.
The EUR strengthened after the speech by the head of the US Federal Reserve System (Fed) Jerome Powell, in the US Senate before the members of the Banking Committee, causing further investor concerns regarding the US economy when Mr. Powell described the rescue operations of the US economy as uneven and incomplete. He also said it was certainly not relevant at the present time to consider raising interest rates or to limit the current program of buying government bonds worth US$ 120 billion monthly, which increases the US budget deficit. According to analysts and financial strategists, these facts increased the investment confidence in the EUR and thus increasing the demand for this currency.
This increased pressure of the rising exchange value of the EUR, was not resisted even by the long-resisting currency, the British pound (GBP). In the last few days, the GBP has strengthened significantly against the USD but also partly against the EUR. At the moment, however, the GBP/EUR currency pair has seen a strengthening trade trend of the EUR against the GBP, and on 25 February at 11:52 am CET, this currency pair EUR/GBP traded at a reciprocal exchange rate of GBP 0.8633 per EUR, with a daily appreciation of the EUR of +0.38% against the GBP.