On Thursday, the euro rose. How is the yen doing?
Today, the common currency saw a sharp rise in value compared to the U.S. Dollar. The European Central Bank raised its deposit rate 350 basis points from July to 3%. Officials are trying to stop inflation from spiraling. However, the ECB stated that future increases would depend on economic data. Refinitiv data revealed that forex markets were pricing in two 25-basis point rate increases by European Central Bank by September.
Today, traders are focused on the policies and ignoring concerns about the banking sector crisis. According to new reports, inflation in Germany could fall significantly in March. Also, energy prices declined. Investors are waiting for Germany’s preliminary inflation figure, which is due later today.
Spain reported this month that consumer prices increased by 3.3% in Spain year-over-year. This pace is slower than the one-year period ending August 2021.
Goldman Sachs pointed out that the European Central Bank is solely focused on core inflation dynamics. The eurozone core inflation might increase to 5.72% in Friday’s release. Isabel Schnabel, a member on Wednesday of the ECB Board, stated that underlying…