Currencies, bonds and commodities – the euro makes profits – the economy

After the publication of the minutes of the last meeting of the European Central Bank, it becomes clear that the ECB will maintain its accommodative monetary policy for some time. This weakens the common currency.

The euro gave up some of its recent gains on Thursday. Given the lax monetary policy of the European Central Bank (ECB), the common currency was listed down 0.2% to $ 1.1750. Monetary authorities had an intense debate on their new interest rate outlook at their last interest rate meeting, as the meeting minutes show. The ECB wants to keep its key rate at the current level or even lower until it is seen that inflation has reached 2% and remains so for the time being. In bond markets, the yield on ten-year federal securities fell from minus 0.417 to minus 0.401%.

South Korea’s currency, the won, also tended to be weaker. The country’s central bank was the first major economy in Asia to raise its key interest rate during the corona pandemic. However, Federal Reserve Chairman Lee Ju-yeol gave a rather cautious interest rate outlook. Monetary policy remains flexible, Lee said. The course of monetary policy depends on the development of the pandemic and the monetary policy of other central banks.

In commodities markets, investors have benefited from the recent rise in oil prices. The price of Brent North Sea crude oil fell 1% to $ 71.60 per barrel. Previously, the surprising decline in oil inventories in the United States and rising fuel consumption had boosted oil prices. “Right now, American consumers seem to be getting rid of the proliferation of the Delta variant,” commented Capital Economics strategists. “However, it is likely that we are nearing peak US demand, which will cap oil prices.” Oil prices were also weighed down by the appreciation of the dollar. Crude oil traded in US currency has therefore become a little more expensive for many investors, which has dampened their demand.

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