The euro rate changed little on Thursday after the losses of the day before. In the evening, the common currency traded at $ 1.1835, roughly the same level as Wednesday. The day before, the very good humor of purchasing managers in the US service sector had boosted the dollar and weighed on the euro.
After the Bank of England’s interest rate decision, market investors bought up sterling. The British central bank is keeping its interest rate ultra-low despite rising inflation. Monetary authorities around central bank chief Andrew Bailey left the key rate at 0.1% on Thursday. They also maintained the volume of their ongoing stock purchase program of £ 895 billion (well above a trillion euros). At the meeting, however, a monetary watchdog voted to limit purchases of government bonds. Monetary authorities continue to assume that inflation will only stay high for some time. They have given early indications of how they intend to curb their bond purchases in the future. The pound climbed to 1.3948 dollars or 1.1776 euros. Conversely, investors pulled out of UK bonds. This drove the ten-year stock return to 0.540 percent. From the point of view of Elmar Völker, analyst at the LBBB, the central bank is sending a first warning on the reversal of monetary policy. “The first rate hike is therefore to be expected within two and a half years, the British sending signals similar to those of their colleagues at the Fed before,” said the expert.
Oil prices have stabilized after recent price losses. Previously, they had fallen for three consecutive trading days. A barrel (159 liters) of the American variety WTI cost $ 69.10 in the evening. It was 1.4% more than the day before.