Euro Returns Above Dollar Parity as Traders Anticipate Big ECB Rate Hike

Azeez Mustapha

Updated:

UNLOCK DAILY FOREX SIGNALS

Select a Plan

£40

 1-month subscription

Select

£30

 3-month subscription

Select

£21.5

 6-month subscription

Select

£399

 lifetime subscription

Select

£50

 Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored

Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.


The euro (EUR) reclaimed its footing above parity against the dollar (USD) on Tuesday as traders turned their focus to Germany’s inflation data, which should give indications of the likelihood of an aggressive interest rate hike decision by the European Central Bank (ECB).

At press time, the EUR/USD pair trades up by 0.32% today, after peaking at 1.0055. The EUR gained against the dollar on rare bets and from bullish bias from the previous day’s session. Commenting on the price dynamics around the euro, John Hardy, the head of FX strategy at Saxo Bank, noted that “It’s about the ECB being priced far more aggressively over the past few sessions, as well as a little bit of pressure coming off the natural gas prices.” Hardy further explained:

“It’s also noticeable we’ve seen a bit of magnetism around this parity level for euro/dollar, so many times these big round levels can become major sticking points.”

EUR/JPY Strains To Move Towards 138.00 Despite Fidgets in Italy's PoliticsEuro Traders Foresee 0.75% ECB Rate Hike

There are increasing bets that the ECB could raise its rates by a 75 basis point hike in its next decision, after several ECB speakers at the recently concluded US Fed Jackson Hole symposium indicated support for a more aggressive rate hike.

As mentioned earlier, the German CPI will paint a clearer picture of how aggressive the ECB will be with its rates to combat rising inflation. Data from earlier today showed that the Spanish national consumer prices increased by 10.4% in August Year-on-Year (YoY), underachieving targets of 10.9%.

Euro traders will also focus on speeches from several ECB speakers later today, which could influence the near-term price dynamics in the market. Likewise, traders will keep their eyes on oil prices as the European nations race to fill up storage facilities ahead of winter.

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *