The Euro has stopped its recent high for the time being on Wednesday. After the common currency had temporarily reached a new three-year high at $ 1.2323 last night, the euro fell significantly to only $ 1.2214 until midday trading. The ECB last set its reference rate at $ 1.2230 on Tuesday afternoon.
According to market observers, the euro was weighed down by initial worries from the ranks of the ECB about possible consequences of the recent flight. Within the European central bank, within a short time several voices were heard, which had tended to be worried.
ECB Vice-President Vitor Constancio told the Italian newspaper La Repubblica: “Sudden price movements are worrying me unless they reflect a change in the fundamental situation.” ECB Governing Council member Ewald Nowotny said that the rise in the value of the euro was “not helpful”. France’s central bank chief Francois Villeroy de Galhau became clearer: “The recent development of the exchange rate is a source of uncertainty, which should be observed because of their possible dampening effects on import prices.”
During the night of Wednesday, the euro has temporarily risen to its highest level since the end of 2014. In part, this increase was due to a consistently weaker dollar. In part, speculation on a less relaxed monetary policy by the ECB was decisive.
In the further course of trade, US economic data could provide new impulses for the foreign exchange market. In the US, production data from industry and real estate market numbers are expected. In the evening, the US Federal Reserve published its economic report, also known as the “Beige Book”.