The slide in the common currency seems to have come to an end for the time being. The euro temporarily rises above the 1.02 dollar mark. After slipping below the $100 mark, the oil price has increased significantly.
On Thursday, the euro recovered somewhat from its significant losses of the past few days. The shared currency temporarily surged above $1.02 and off its freshly marked 20-year low. Investors were also relieved that there were no nasty surprises in the minutes of the US Federal Reserve Board meeting, stockbrokers said. According to the minutes of the Fed’s June meeting, there is likely to be another rate hike of 0.5 or 0.75 percentage point at the end of July. In view of the sharp slowdown in US economic growth, investors did not believe in a continued aggressive tightening course, said analyst Tina Teng from CMC Markets.
In addition, stockbrokers looked to London, where Prime Minister Boris Johnson announced his resignation after a series of scandals. The pound sterling appreciated, but the plus was comparatively small at 0.5 percent to $1.1992. “The new prime minister is likely to want to win over the public with a looser tax policy,” said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. That would make the Bank of England’s (BoE) fight against inflation even more difficult.
After slipping below $100 a barrel, Brent oil prices picked up again. In the evening, the North Sea variety was up 4.2 percent at $102.67 per barrel. Investors’ attention is currently focused on the tight supply situation, said stockbrokers. The copper price also struggled after its recent sell-off. The base metal rose four percent to $7,822 a ton after slipping to its lowest level in a year and a half the day before.