FRANKFURT / LONDON (dpa-AFX) – The euro gave way a little on Friday in stores in London. The common currency was quoted at 1.1318 US dollars in the morning. It was quoted a little lower than in early trading. The price fluctuations were kept within narrow limits on New Year’s Eve. The European Central Bank set the reference rate on Thursday at $ 1.1334.
Shortly before the end of the year, the euro was lacking momentum. There are no important economic data in the euro zone and the USA. Many traders have already closed their books.
The euro is expected to end the year with significant price drops. At the beginning of January it was quoted above $ 1.22. The main reason for the weakening is the different monetary policy orientation in the USA and the euro zone. The US Federal Reserve is taking a more determined approach to exiting its loose monetary policy. The first rate hike is expected in mid-2022. The ECB has not yet signaled an interest rate hike for the coming year./jsl
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