Investors are confident in the dollar just before the release of the main points from the last monetary policy meeting of the US Fed. On the other hand, the euro weakened significantly during Tuesday’s trading due to concerns about weakening economic activity in Germany.
The Dollar on the Right Track
The U.S. dollar rose 0.82 percent against a basket of major currencies. Investors trust him, even just before the release of the main points from the Fed’s latest monetary policy meeting. In it, the US Federal Reserve could outline a longer-term strategy for raising its key interest rates, even though it has repeatedly signaled that it intends to slow its pace.
Europe is not happy about the US
Tuesday’s trading, on the other hand, was a “black day” for the euro. This, on the contrary, weakened, and quite significantly, losing 0.92 percent against a basket of currencies. The unexpectedly strong drop in German inflation is to blame, which may indicate a larger decline in economic activity. Inflation in Germany fell in December for the second month in a row and was two percentage points lower in year-on-year terms compared to October.
But experts say this is a typical January development. “A strong start to the new year is characteristic of the dollar,” Shaun Osborne, chief strategist at Scotiabank, told Reuters.