The euro widened its losses against the dollar on Tuesday. Better-than-expected US labor market data had fueled speculation about an exit from the US Federal Reserve’s extremely loose monetary policy and boosted the US currency. The greenback rose to a four-month high against the euro. In return, the common currency fell 0.1 percent to $ 1.1721. There was also disappointing economic data from Germany. Stock market professionals lowered their expectations of the economic upswing in Germany in August for the third month in a row, according to a survey by the Mannheim Center for European Economic Research (ZEW). The reason for this is the fear that the rise in Covid-19 infections could slow the recovery of Europe’s largest economy.
Prices on the oil market rose slightly, recovering somewhat from the recent losses. A barrel of the North Sea Brent cost almost three percent more than the day before at $ 70.88. The price for a barrel of the US WTI variety also rose by around three percent to $ 8.40. Market observers spoke of a slight countermovement. Previously, oil prices had fallen significantly on two trading days in a row. The prices had been weighed down by the stronger US currency. Their rise made the dollar-traded commodity more expensive outside the dollar area, thereby slowing demand. However, the recent development of the corona crisis remains a drag on oil prices. Experts do not want to rule out a further decline in prices. Above all, the consistent action by the government in China to contain the pandemic is a cause for concern, as it could jeopardize the economic upturn in the world’s second largest economy.