After the euro fell significantly the day before, the euro exchange rate moved in a narrow range on Wednesday at just over 1.17 dollars. The oil price is also increasing, ending the downward slide of the past four trading days.
The euro stabilized above $ 1.17 on Wednesday after significant losses the day before. In the late evening, the common currency was trading at $ 1.1712, which is hardly any change compared to the previous evening. Last night, after strong data on US industrial production, the euro temporarily slipped to $ 1.1702, its lowest level since November. Few key economic data was released on Wednesday. Data from the US housing market was mixed. While the number of newly started residential construction fell significantly in July, building permits rose more sharply than expected.
The release of the Fed’s minutes of meetings had little impact on trading. The US Federal Reserve is not yet satisfied with the situation on the labor market. Most participants at the latest central bank meeting at the end of July were of the opinion that “substantial further progress” on the way to the full employment target had not yet been achieved, according to the minutes published late in the evening. In the opinion of most members of the Monetary Policy Committee, however, the goal of price stability has been achieved. The Fed is aiming for annual inflation in the US of around two percent. Most recently, the value was 5.4 percent, but most experts expect a decline again soon. The central bank members disagreed on the question of when one could reduce bond purchases. Oil prices continued to fall, continuing the downward trend of the past four trading days. A barrel (159 liters) of North Sea Brent was 1.5 percent lower at $ 67.97. Worries about measures to contain the coronavirus had a negative effect. Especially the development in China with the temporary closure of port facilities created a nervous mood.