Frankfurt (dpa-AFX) – The euro rose on Wednesday after weak US economic data. In the afternoon, the single currency was trading at $1.0383. In the morning it was included much less. The European Central Bank set the reference rate at 1.0325 (Tuesday: 1.0274) dollars. Thus, the price of the dollar is 0.9685 (0.9733) euros.
In the afternoon, weak economic data from the United States weighed on the dollar. The S&P Global Purchasing Managers’ Index fell more than expected in both manufacturing and services. Both are now below the 50-point growth threshold. The indicator thus indicates a decline in the activity of the economy as a whole.
In addition, the number of initial weekly jobless claims rose more than expected. Both numbers reinforce expectations that the US Federal Reserve is likely to slow the pace of interest rate hikes. Minutes of the US Federal Reserve’s latest interest rate meeting, which is scheduled for the evening, may provide more clues here.
Strong economic data from Euro-zone At first the euro gave a little boost in the morning. The S&P Global Purchasing Managers’ Index improved slightly in November. Nevertheless, economists believe that recession in the eurozone is inevitable, even if it is likely to be somewhat moderate. The currency area has been burdened by the consequences of the Ukraine war for a long time, in particular due to the sharp rise in energy and raw material prices.
For other important currencies, the European Central Bank has set reference rates for one euro at 0.86369 (0.86338) British pounds, 145.75 (145.20) Japanese yen and 0.9795 (0.9791) Swiss francs. An ounce of gold was trading at $1,742 in London this afternoon. That was about $2 more than the day before. /jsl/jkr/nas