Euro Breaks Above $1.14 Line Awaiting Fed Rate Announcement
Euro gains ground versus US dollar today. The EUR/USD pair added 0.40% to trade at 1.1410 level. Overall this week, the single currency gained 1% versus the USD, as the greenback eased awaiting Fed’s statement on monetary policy. Still, the EUR/USD has posted 2.7% losses since July 1.
The US Federal Reserve is expected to raise interest rates to a range between 2.25% and 2.50% today, which would mark the fourth rate hike in 2018. Since the December meeting is extended, it will be accompanied by an update of economic forecasts and a press conference of the head of the Federal Reserve. But more important will be the predictions of the regulator regarding the further rate of rate increases.
Today’s data showed, that Eurozone construction output growth slowed from 4.8% in September to 1.8% in October, missing expectations of a more modest dip to 2.9%. German PPI fell to 0.1% in November, its weakest gain since February.