Euro Weakens Against Dollar as Eurozone Inflation Falls

Updated:

Checkmark

Service for copy trading.

Checkmark

High profitable signals.

Checkmark

24/7 cryptocurrency trading.

Checkmark

10 minute setup with significant benefits.

Checkmark

79% Success rate.

Checkmark

Up to 40 trades per month.

Checkmark

Monthly subscriptions begin at £58.



The euro took a bit of a tumble on Thursday as inflation in the eurozone dropped to 8.5% in February, down from 8.6% in January. This drop came as a bit of a surprise to investors, who had been expecting inflation to remain high based on recent national readings. It just goes to show that even the best and brightest can be caught off guard sometimes.

Despite the drop in inflation, market reaction remained pretty calm after the euro rose 0.9% against the dollar on Wednesday. Inflation is always a bit of a balancing act, after all.

German Inflation Higher Than Expected

Speaking of surprises, prices in Germany rose higher than expected last month, which led to the euro’s biggest daily jump in a month. France and Spain had similarly strong readings, leading investors to believe the European Central Bank (ECB) will continue raising interest rates. Investors are expecting a 100-basis point increase in March and May, followed by around 4.1% by the end of the year.

Euro Weakens Against Dollar as Eurozone Inflation Falls

Euro Weakened Against Dollar

The dollar index, which measures the US currency against six others, rose 0.43% to 104.82. It seems the greenback is giving the euro a run for its money (pun intended).

Despite investor optimism surrounding the ECB’s interest rate hikes, the euro dropped 0.5% against the dollar to $1.0618. It looks like it’s not all sunshine and rainbows for the euro, but who knows what surprises the markets have in store for us next?

Meanwhile, sterling was held back by remarks from Bank of England Governor Andrew Bailey. He said “nothing is decided” on future rate increases, causing traders to trim back bets on higher rates. Sterling was down 0.46% to $1.1970. It seems like the Bank of England is playing it close to the vest.

 

You can purchase Lucky Block here. Buy LBLOCK

 

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • 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
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 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.