The single European currency strengthened against the USD

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The single European currency (EUR) exchange rate has risen on the foreign exchange market, especially against the US dollar (USD). According to economic rapporteurs, this change came after the Federal Reserve System (Fed) chief Mr. Jerome Powell, delivered his speech yesterday to the US Congress and confirmed that the Federal Open Market Committee (FOMC) intends to cut interest rates from the current level, which is in the range of 2.25 – 2.5 percent p.a.

On Thursday, 11 July, 2019 at 7:59 CET the EUR/USD global currency pair traded at a mutual exchange rate of US$1.1268 per EUR with a daily EUR appreciation of + 0.17% against the USD. On the same day and at the same time, the single European currency also strengthened slightly against the Czech Crown (CZK), when the EUR/CZK currency pair traded in a range of 25.5598 and 25.6230 CZK per EUR with a daily EUR appreciation of + 0.02% against CZK. However, according to analysts, it is expected that the Czech crown will slightly appreciate against the Euro by the end of the current 28th week.

However, the Euro has not yet received sufficient support from investors compared to the other currencies such as the British pound (GBP) or the Japanese yen (JPY). On 11 July, 2019, at 8:17 CET, the EUR/GBP currency pair traded on the Forex market at a mutual exchange rate of GBP 0.8993 per EUR, with a daily depreciation of the EUR at – 0.06% against GBP. A similar situation for the Euro occurred in relation to the Japanese yen, when the EUR/JPY currency pair traded at the exchange rate of JPY 121.64 per EUR with the EUR depreciation of -0.30% against the JPY.

However, according to economic rapporteurs along with analysts, in the short and especially medium-term investment horizon, under the influence of the European Central Bank (ECB) new president Ms. Christine Lagarde, it is expected the ECB will loosen monetary policy faster than their US counterpart – the Fed. On the basis of these faster interest rate cuts and the introduction of further measures to weaken currencies, analysts expect the EUR/USD exchange rate fall below the USD 1.10 per EUR.

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