The Euro Stable Against US Dollar With Rally Stopped

The euro’s exchange rate stabilized against the dollar above $ 1.18 Monday (September 7th) as traders assess the latest US jobs data and prepare for the European Central Bank’s meeting on Thursday to see whether policymakers provide more stimulus.

The dollar plunged to its lowest level in more than two years against the euro at the beginning of September, as investors were concerned about the recovery of the US economy and bet that US interest rates would remain low for a longer period at a time when policymakers created a large fund for recovery in Europe.

But the US currency stabilized in the past few sessions, especially after the euro briefly touched $ 1.20 level, and this was followed by selling in the single currency.

Today, witnessed a quiet start to the trading session, and the euro settled in the latest transactions at $ 1.1841, without much change during the session, while the dollar index was unchanged at 92.875.

Analysts say the violent decline in US stocks last week also spurred dealers to adjust their positions in the dollar.

The British pound was the biggest move, dropping 0.5% after reports said Britain had threatened to cancel a deal to leave the European Union.

The British currency fell 0.5% to $ 1.3218, while against the euro it touched its lowest level in a week at 89.605. Against the yen, the dollar traded slightly lower during the session at 106.19.

There was little change in the Chinese yuan in foreign trade, and it was recorded in the last trade at 6.8334 for the dollar, after customs data on Monday indicated that the country’s exports recorded the strongest rise since March 2019, while imports decreased.