EURUSD continued to achieve gains on Friday morning in the European market, and recorded the fifth consecutive daily rise, recording its highest level in three weeks, and the single currency is heading towards achieving the largest weekly rise since March 2020, this expansion comes after The results of the European Central Bank meeting, which raised expectations of an interest rate hike in the eurozone this year, reducing the difference between the monetary policies of the European Central Bank and the Federal Reserve.
The euro traded against the US dollar at the level of 1.1471 dollars, the highest in three weeks, adding about 0.3% from the opening level of today’s session to 1.1437 dollars. With the narrowing of the difference between the monetary policies of the central banks in Europe and the United States.
Since the beginning of the week’s trading so far, the single currency has added gains against the US currency by about 2.9%, heading towards recording the largest weekly rise since March 2020.
European Central Bank meeting
The European Central Bank agreed, at its meeting that ended on Thursday, to keep the interest rate at its current levels unchanged, and decided to end its stimulus program for the pandemic in the month of March.
European Central Bank President Christine Lagarde acknowledged that prices have risen significantly and are expected to remain high for longer than previously expected, but also emphasized that the inflationary background is still being driven by the “temporary” effects of energy prices, and added that inflation will decline. Later in the year, it will be broadly in line with the 2% target over the medium term, however, near-term risks “tipped to the upside”.
Lagarde said that if inflation rates remain at high levels, the Bank will likely consider its decision to tighten monetary policy at its next meeting in March. Its next meeting is in March.
Eurozone annual inflation rose to 5.1% in January 2022, up from 5% in December versus market expectations of 4.4%, excluding food and energy prices, core inflation was 2.3% in January, down from 2.6% in December but still above expectations at 1.9%.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
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