After the significant gains on the previous day, the euro fell on Thursday. In the evening, the common currency cost $ 1.0543, 0.7 percent less than on Wednesday. The evening before, after the Fed’s interest rate decision, the euro received a boost from comments from the ranks of the US Federal Reserve. The Fed had raised its key interest rate by 0.5 percentage points to combat high inflation and promised further increases. However, Fed Chair Jerome Powell dismissed the possibility of even stronger steps being traded on the markets. The dollar then came under pressure and other currencies benefited.
Monetary policy was also in focus on Thursday. In Great Britain, the central bank increased its key interest rate by a quarter point to 1.0 percent. It was the fourth increase in a row to counteract the high inflationary pressures on the island. The British pound depreciated and cost 1.2336 dollars or 1.1705 euros. Investors are disappointed that relatively few central bankers voted for a larger move, said Naeem Aslam, chief market analyst at brokerage firm AvaTrade.
Ahead of the meeting of the Opec+ oil association, oil prices widened their significant premiums from the previous day. A barrel (159 liters) of North Sea Brent cost $110.93. That was 0.7 percent more than the day before. The US leading variety WTI was listed 0.3 percent higher at $ 108.12. Oil prices had already risen sharply the day before. The trigger was the prospect of an EU embargo on Russian crude oil. In this environment, Opec+ is advising on its funding strategy. The Saudi-Russia-led Verbund is expected to continue on its course of modest production increases. So far, despite the Ukraine war, there have been no major conflicts within Opec+.