Euro Gains Ground Despite Escalation of US-China Trade War
The single currency increased by another 0.12% to 1.1761 level. Yesterday, the euro pushed above $1.18 line on ECB President Mario Draghi’s comments. Draghi, testifying before the European Parliament Economic and Monetary Affairs Committee, said there had been a “relatively vigorous pick-up in underlying inflation”.
The euro remains firm, despite escalation of the US-China dispute, which usually gives support to the US dollar. So far, investors have reacted calmly and have not dumped their euro assets in favor of the greenback.
The German wholesale price index (WPI) rose mainly due to the cost of fuel in August. The wholesale price index increased by 3.8% year-on-year last month after an increase of 3.6% in July. This was the fastest growth in wholesale prices since April 2017. On a monthly basis, wholesale prices in August rose by 0.3%, after rising 0.1% in July.