Currency: The Euro will be held alone

(ABM FN-Dow Jones) The Euro traded around $ 1.19 on Tuesday, which might come as a surprise.

“Given the data and insights from the Federal Reserve, this is an impressive rate,” currency trader Stéphane van der Meer of Ebury currency broker told ABM Financial News on Tuesday. Van der Meer said: “With the Fed Chairman’s words in mind, you are expecting the dollar to rally. That’s why we think we are now in a calm state before the storm.”

In a 60 Minutes interview, Federal Reserve Chairman Jerome Powell expressed his optimism about the US economy this weekend, but also assured, according to market analyst at AvaTrade, Naim Aslam, “2021 will not be a year of monetary policy changes.”

“We think we’ve reached the point where the economy is starting to grow faster and job growth is accelerating dramatically,” Powell said. The US economy is expected to create more than 1 million new jobs every month for several months at a time.

Powell only wants to consider raising interest rates if there is an employment cap and inflation has been above 2% for some time. “It will take some time before we get this in order,” said the banker.

Van der Meer said, “With a long-term interest rate of 1.68 percent, you would expect a stronger dollar. Today, the current exchange rate for the euro may change after the release of US consumer prices in March.”

Van der Meer said Wednesday could be a dynamic EUR / USD day with several monetary speakers, including Powell and European Central Bank President Christine Lagarde.

Exports and imports from China also increased by tens of percentages in March, as evidenced early this morning.

The British economy showed growth again in February this year, while industrial production was also on the rise on a monthly basis. The British were able to export nearly 10 percent more in February and import nearly 9 percent more.

The German ZEW index unexpectedly fell in April to the level of 70.7, where an increase was expected from 76.6 to 79.5.

In the US on Tuesday, attention will be focused on small business confidence in March and, as reported, on consumer prices for the same month.

Speakers on Tuesday will be Governor Francois Villeroy of the Bank of France, Kansas City Bank Chairman Esther George, San Francisco Mary Daly, Atlanta Raphael Bostic, Cleveland Loretta Meester, Boston Eric Rosengren, Philadelphia Patrick Harker and Richmond Thomas Parkin.

The euro fell 0.1% on Tuesday to $ 1.1897. The European currency fell 0.2 percent to 0.8648 pounds. The British pound rose 0.1 percent on Tuesday and was trading at $ 1.3761. The dollar settled at 6.5478 Chinese yuan. The dollar fell 0.1 percent today to trade at 109.2915 yen.

ABM Financial News; [email protected]; Revised text: +31 (0) 20 26 28999.