The euro expanded its gains from the previous evening on Thursday. The common currency rose to $ 1.1890, the highest level since the beginning of July. The euro received a boost from a weaker dollar, which was weighed down by decisions by the US Federal Reserve on Wednesday evening. After its interest rate meeting, the Fed did give indications of a foreseeable less generous monetary policy. Central bank chief Jerome Powell remained vague and stated that the situation on the labor market in particular is not yet sufficient to be more specific. The euro was also supported by economic data from the euro zone. The business climate there had risen to a record high as part of the easing measures in the pandemic.
In view of the persistently loose monetary policy, many investors turned to gold. The troy ounce of the precious metal rose by more than one percent to $ 1,831.
On the other hand, German government bonds were sold. In return, the yield on the relevant ten-year federal bond rose from minus 0.447 at times to minus 0.424 percent. The trigger for the sales was a surge in inflation in Germany in July to 3.8 percent compared to the same month last year. In June it was 2.3 percent.
Prices on the oil market continued to rise. A barrel of North Sea Brent cost $ 75.73, 1.3 percent more than the previous evening. The price of the US variety WTI also rose 1.3 percent to $ 73.32. Oil prices were boosted by the weaker dollar. Since crude oil is traded in the US currency, a falling dollar makes the raw material cheaper for interested parties outside the dollar area and often increases their demand. The oil market was also supported by inventory data from the USA. Stocks of crude oil were n last week at their lowest level since early 2020.