Foreign exchange: Euro noticeably under pressure against the US dollar

FRANKFURT (dpa-AFX) – The euro came under noticeable pressure against the US dollar on Tuesday. In the afternoon, the common currency was priced at $ 1.1242. In the morning, the euro was still near the $ 1.13 mark. The European Central Bank set the reference rate at 1.1256 (previous day: 1.1287) dollars. The dollar cost 0.8884 (0.8859) euros.

Corona worries have taken a back seat. First results indicate that the course of the disease with the new Corona variant Omikron is not that bad. The dollar benefited from the generally very positive mood on the financial markets, as the US Federal Reserve can hold on to the exit from its loose monetary policy. “The Fed is likely to raise its key rate in the middle of next year,” expects You-Na Park-Heger, foreign exchange expert at Commerzbank. “The ECB is likely to hold still for a while.” The dollar will likely benefit from this.

German production data surprised positively in the morning, but hardly moved the euro. German industry increased its production significantly in October. Analysts’ expectations were exceeded. The development is a positive sign for industrial companies. They have long been suffering from the strong, predominantly corona-related tensions in world trade.

In the morning, however, the worsened mood of German financial experts weighed on the euro a little. The economic expectations gathered by the Mannheim research institute ZEW clouded over somewhat in December. The assessment of the current situation fell significantly and is in negative territory for the first time since June.

“The ZEW economic expectations are now falling under the wheels of the fourth corona wave,” commented Thomas Gitzel, chief economist at VP Bank. The imposed restrictions put the hotel and restaurant industry, but also the entire leisure sector, under pressure.

For other major currencies, the ECB set the reference rates for one euro at 0.84933 (0.85128) British pounds, 127.83 (127.78) Japanese yen and 1.0414 (1.0416) Swiss francs. The troy ounce of gold was trading at $ 1,781 in London that afternoon. That was about three dollars more than the previous day./jsl/bek/jha/

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