Currencies and commodities – the euro stabilizes – economy

After the euro fell significantly the day before, the euro exchange rate was moving in a narrow range on Wednesday at just over $ 1.17. The price of oil is also rising, ending the decline of the last four trading days.

The euro stabilized above $ 1.17 on Wednesday after significant losses the day before. By late evening, the common currency was trading at $ 1.1712, which is hardly a change from the previous evening. Last night, after strong US industrial production data, the euro temporarily slipped to $ 1.1702, its lowest level since November. Few key economic data was released on Wednesday. The US real estate market data was mixed. While the number of new residential construction declined significantly in July, building permits increased more than expected.

The publication of the minutes of the Fed’s meetings had little impact on trading. The US Federal Reserve is not yet satisfied with the situation on the labor market. Most participants at the last central bank meeting at the end of July were of the opinion that “further substantial progress” towards the goal of full employment had not yet been achieved, according to the minutes released late. In the evening. In the view of most members of the Monetary Policy Committee, however, the objective of price stability has been achieved. The Fed is targeting annual inflation in the United States of around 2%. More recently, the value was 5.4%, but most experts expect a further decline soon. Members of the central bank disagreed over when to cut bond purchases. Oil prices continued to decline, continuing the downtrend of the past four trading days. North Sea Brent’s barrel (159 liters) was down 1.5% to $ 67.97. Concerns over measures to contain the coronavirus have had a negative effect. Especially the development in China with the temporary closure of port facilities has created a nervous atmosphere.

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