Reportedly, the ECB is analyzing the possibility of the change of the current inflation target of "below but close to 2%". It weakened the EUR
Euro reaches one-week maximum on hawkish comments
On Tuesday, the common currency demonstrated a one-week maximum because market participants added trading positions on a hawkish overnight statement by a policymaker, which reaffirmed bets the euro zone economy's outlook is still firm enough.
The euro’s ascend in 2017 has lost some momentum for the last days because political concerns – mainly Spain's Catalan crisis - have gone up pushing the common currency down versus the evergreen buck more than 3% for the last month.
However, on Tuesday, it bounced almost 0.4% hitting $1.1789, which is its highest outcome since October 2. It occurred after overnight comments from a member of the European Central Bank executive board, Sabine Lautenschlaeger, calling for the EU’s major financial institution to roll back asset purchases next year.
Market sentiment was also backed by upbeat data from Germany. In August, this country’s industrial output demonstrated its biggest monthly ascend for more than six years, as data disclosed on Monday.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…