The Euro is losing value again against the US Dollar, and in the last hours it was priced at 1,015 US Dollars in the international market.
Although the European currency managed to stabilize around $1.02, having been lower than the US currency, it is now faltering again after reports of rising inflation in the US and the Old Continent.
At this very moment, the Euro is trading at 1.02, which is a slight recovery compared to the last few hours, after the European currencies traded yesterday.
For its part, the European Central Bank (ECB) set the reference exchange rate for the euro at $1.0198.
The increase in prices in the United States and Europe
According to analysts, these fluctuations are due to recently released inflation data in both the United States and Europe.
In the US, year-on-year inflation was calculated at 6.8% at the end of June, slightly higher than in May, calculated at 6.3%. This is how it became known, from the personal consumption expenditures price index, which is an indicator that the United States Federal Reserve (Fed) follows to base its monetary policy.
According to economists, this rise in inflation is due to the fact that American citizens spend more quickly in June than in previous months. This situation is really worrying, because it represents the negative record of the past four decades.
For its part, inflation in the Eurozone is estimated on an annual basis at 8.9%, with GDP growth of only 0.7%.
“Given that the French and Spanish inflation data on Friday morning exceeded all expectations, it is very likely that inflation will rise to 9%. This would make us consider more strongly the ECB raising interest rates by 50 basis points in September, which will save the euro More support at the weekend,” some analysts at Monex Europe said.