Growth of Euro Goes On
The euro rose by 0.33% and the euro/dollar pair is trading at 1.1840. The producer price index in the Eurozone decreased by 0.1%, which is in line with the forecast. Markets are awaiting release of data on US employment, which may affect state of the EUR/USD pair. The euro rose by 3.5% in July. Strong US GDP growth in the second quarter (2.6%) did not significantly support the dollar.
Markets expect that the US Federal Reserve will raise the base interest rate level in December. According to CME Group, the chances of a rate hike in December are only 42%. Investors remain concerned that low inflation in the US will slow the Fed’s rate hike.