Other Markets - Foreign Exchange
Euro grapples at one-year low against dollar; US inflation eyed As on : 13-Nov-24  12:38

The euro is struggling at its lowest level in over a year against the US dollar and has breached several critical levels since start of October. Massive gains in the greenback following victory of Donald Trump in US Presidential elections have battered the single common currency severely. Besides, euro has been on a relentless decline after ECB data showed Euro zone inflation fell below 2% mark for the first time since 2021 that could trigger rate cuts. Moreover, German Economy Minister Robert Habeck announced last month that the German economy is expected to shrink by 0.2% this year, down from earlier forecasts of a 0.3% growth and marking the second consecutive year of contraction. This bleak outlook also makes Germany the only G7 economy projected to contract in 2024, a continuation of its 0.3% decline in 2023. Currently, EURUSD is trading at a yearly low of $1.0626; almost flat on the day but having lost 2.5% in November alone and over 4% fall since the start of last month. The counter is seen staying pressured on the downside as ECB is on a rate cut spree whereas Trump's proposed fiscal policies are expected to fuel inflation risks and hence delay Fed rate cuts. All eyes are now on US inflation and EU third quarter GDP figure for further directional cues.

Powered by Capital Market - Live News