The euro rate fell again on Tuesday. At $1.0639, the common currency was temporarily at its lowest level in over two years. In evening trade, the euro traded at $1.0647. The European currency is currently being weighed down primarily by the high interest rate expectations in the USA. The Federal Reserve is expecting a sharp turnaround in monetary policy there this year, with rapid and significant interest rate hikes. The background is the high inflation of 8.5 percent recently. Many experts expect the ECB to be more cautious than the Fed.
Oil prices have risen again after a weak trend on the previous days. In the evening, a barrel (159 liters) of North Sea Brent cost $105.55. That was 3.2 percent more than the day before. The price of a barrel of the US West Texas Intermediate (WTI) variety rose by 3.6 percent to $102.09. Most recently, concerns about demand had weighed on oil prices, albeit at a high level. The main thing is China’s strict corona policy, which is reacting to regional virus outbreaks with strict measures. After the metropolis of Shanghai was affected in the past few weeks, mass tests have been carried out in the capital Beijing for some time. There is concern that strict corona measures will also follow there.
China is one of the largest oil consumers in the world. The tight corona course of the political leadership gives rise to fears that the economy of the world’s second largest economy will be more severely affected. Many other large economies would also be affected by foreign trade, not least Germany.
Gold was in demand again. The “anti-crisis currency” temporarily rose in trading in the evening by 0.7 percent to $1,911 per troy ounce (31.1 grams).