That is why the euro has been falling to a new low since mid-2020
The euro gave way on Wednesday and has hit another low since mid-2020.
At noon, the common currency fell to $ 1.1204, its lowest level since the end of June 2020. The European Central Bank (ECB) set the reference rate at $ 1.1259 on Tuesday afternoon.
The euro is currently burdened primarily by the clearly tense corona situation in many euro countries. Correspondingly, the corporate mood in Germany clouded over for the fifth time in a row. Economists interpreted the renewed decline in the Ifo business climate as a sign of economic stagnation, in the worst case even contraction. “At best, the German economy should stagnate in the winter half-year,” commented Commerzbank chief economist Jörg Krämer.
In the afternoon, a veritable flood of economic data is on the program in the USA. The reason is the national holiday “Thanksgiving” on Thursday, which many US citizens and authorities use for a long weekend. Therefore, many economic figures are preferred.
In addition, the US Federal Reserve published its minutes of the latest interest rate meeting that evening. Analysts and investors are likely to scour the transcript for additional clues about the Fed’s monetary policy direction. The Fed has started to tighten its monetary policy somewhat by gradually scaling back its huge asset purchases.
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