After its recent losses, the euro has moved little on Thursday.
The common European currency was $ 1.0804 in the morning. It was just above the level from the previous evening. The European Central Bank (ECB) had set the reference rate on Wednesday at $ 1.0807 (Tuesday: 1.0843).
The euro had fallen again the previous day. The ruling by the Federal Constitutional Court on the ECB’s bond purchases from Tuesday had an effect. In addition, a number of recently very weak economic data weigh on the single currency. Foreign exchange expert Antje Praefcke from Commerzbank speaks of a “toxic mix” for the euro. Production data from Germany and France were also extremely weak.
Meanwhile, the Turkish lira continued to weaken against the dollar, dropping to a record low. In return, up to 7.25 lira had to be paid for one US dollar – more than ever before. The lira has been descending for a long time. In addition to the corona crisis, the reason for this is the loose course of the Turkish central bank, which continues to cut rates despite the devaluation of the lira. Voices warning of a rapid meltdown of the country’s currency reserves are piling up on the markets.
In the afternoon, the view turns to the US job market. Weekly initial jobless claims are expected. Here again, a massive increase is expected. The monthly labor market report will be on the calendar on Friday.
/ ssc / bgf / mis
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