Euro/Dollar rate remains intact but the market may experience some shocks

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On Thursday, after a temporary drop of less than $ 1,1700, the euro returned to the same level it recorded 24 hours ago: $ 1,1730.

The interest rate decision, the announcement of a reduction in aid purchases, the dot plot and the new Federal Reserve estimates did not surprise the market on balance. Nevertheless, the foreign exchange market is still in the dark about the moment when the Fed is diminishing its approach and what it should take. Chairman Jerome Powell fell the cards firmly to the chest on Wednesday evening.

A stable situation for the euro / dollar remaining intact, but it is becoming more fragile. For the euro, a $ 1.20 is very far away, $ 1.19 is far away, and $ 1.1850 is halfway to a provisionally Unknown top of the current band that the euro is in and which is reached at the bottom at $ 1.1700.

Bank of England’s rent decision and the aid applications in the United States are the key events for today. The latter may provide an indication for the US jobs report for September, which will be published in October, bearing in mind that the employment data for August was very disappointing and the Fed is taking the developments in it more seriously for rental purposes than before.

This morning, the first indicators for purchasing managers indices came out of the main eurozone economies in September. They indicate growth without exception, but also less growth without exception.

In addition to the aid applications, where a decrease from 332,000 to 320,000 is predicted, the US also has preliminary purchasing managers indices for September, as well as the leading indicators for August.

The euro recorded 0.2 percent higher on $ 1,1720 on Thursday. The European currency was flat at £ 0.8583. The British pound won 0.4 percent on Thursday, scoring at $ 1.3669.

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