Euro Has Decreased But Stays Above 1.13 Level
The euro fell slightly today and is trading at 1.1350. Data from the Eurozone showed that the producer price index (PPI) fell by 0.4% in May. The unemployment rate in Spain fell sharply to -98.3 thousand.
The euro jumped by 2.0% last week after the announcement of ECB President Mario Draghi. The politician said a possible increase in the interest rate in the future. The ECB said that it will not reduce the quantitative easing program (QE) until inflation levels approach the bank's target of 2.0%.
According to the CME Group, chances of the Fed’s rate hike in December fell to 47%, compared to 53% last week. If inflation and GDP in the US do not improve, the chances of a rate hike in December will drop even more, which can lead to large losses for the US dollar.