The euro widened its losses against the dollar on Tuesday. Better-than-expected US labor market data has heightened speculation that the US Federal Reserve will exit extremely accommodative monetary policy and boost the US dollar. The greenback hit a four-month high against the euro. In return, the common currency fell 0.1% to $ 1.1721. Germany also recorded disappointing economic data. Stock market professionals lowered their expectations for the economic recovery in Germany in August for the third consecutive month, according to a survey by the Mannheim Center for European Economic Research (ZEW). The reason is fears that the increase in Covid-19 infections could slow the recovery of Europe’s largest economy.
Prices in the oil market edged up, recovering somewhat from recent losses. A barrel of North Sea Brent cost almost 3% more than the day before at $ 70.88. The price of a barrel of the American variety WTI also rose about three percent to $ 8.40. Market watchers have spoken of a slight backlash. Previously, oil prices had fallen significantly on two consecutive trading days. Prices had been weighed down by the strength of the US dollar. Their rise made the dollar traded commodity more expensive outside the dollar zone, slowing demand. However, the recent development of the corona crisis remains a drag on oil prices. Experts do not want to rule out a further drop in prices. Above all, the Chinese government’s consistent action to contain the pandemic is cause for concern, as it could jeopardize the economic recovery of the world’s second-largest economy.