Currencies and commodities – euro slightly in the red – economy

The euro continued to trade below the $ 1.18 mark on Friday. In the evening, the common currency cost $ 1.1733, 0.3% less than the day before. The US Federal Reserve’s decision on interest rates, which is slated for next week, casts long shadows. In view of the economic recovery in the USA, the exit from crisis mode is imminent. Investors are wondering when exactly Fed Chairman Jerome Powell will give the signal to cut billion dollar purchases of government bonds and mortgage securities.

The price of oil has fallen on the commodity market. In the evening, a barrel (159 liters) of North Sea Brent cost $ 75.34. It was 0.4% less than the day before. Despite the slight losses, oil prices are close to their highest levels since early August. Price support comes from the supply side: as many production platforms in the Gulf of Mexico are still inactive due to the aftermath of Hurricane Ida, US production is lagging behind. Requirement. According to the International Energy Agency (IEA), even the growing supply of the Opec + oil network cannot compensate for the current shortage.

The price of iron ore has more than halved since its peak in May and is now threatening to drop below $ 100 a tonne. On Friday, it was listed at $ 102.81. Measures taken by China to clean up the industrial sector contributed significantly to the sharp decline, accompanied by a sharp slowdown in the country’s real estate sector. Iron ore is therefore an outlier in a general commodity boom, for example in the case of aluminum, gas and coal. On the one hand, lower prices lighten the burden on steel producers, but it is a setback for mining companies.

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