The euro has surged the most in six months after a European Central Bank policymaker said further interest rate rises may be needed. Meanwhile, traders bet US inflation data later this week could undermine the need for aggressive tightening in the US.
The common currency rose as much as 1.6 per cent to $1.0198, its biggest increase since March.
The central bank must take further clear steps if the inflation picture stays the same, Bundesbank president Joachim Nagel said.
The ECB raised its key rate by an unprecedented 75 basis points last week to curb the fastest pace of consumer price growth on record, narrowing the interest-rate differential with the US Federal Reserve.
The moves came amid broad-based weakness in the dollar, with Bloomberg’s gauge of the greenback’s strength falling to its weakest level in almost two weeks and extending a retreat from a record high touched earlier this month.
US consumer price index data for August is expected to show a slowdown in inflation growth, a Bloomberg survey of economists found.
The market has been resolutely bearish on the euro’s outlook as Russia continues to curb gas supplies to the region, stoking inflation and raising the prospect of a recession.
The ECB has lagged the Fed in tightening policy against the backdrop, contributing to the euro’s slide to a two-decade low this year.
Investors have been this short on the common currency only five times in the past two decades, custody data from Bank of New York Mellon showed.
“To justify clients adding to these shorts, we have to say the euro is facing existential issues or the financial system is facing systemic risks. Neither of which is a reasonable assessment of the eurozone’s current predicament,” said Geoffrey Yu, a senior strategist at the bank. “The burden of adjustment is clearly towards taking off short euro positions.”
The euro also extended gains against the pound, rising at one point to its highest level since February 2021 at 87.22 pence.
Monday’s move caught traders off guard, triggering stop losses and compounding the common currency’s advance, two Europe-based traders said.
The euro could also find a firmer footing with focus on a speech from ECB executive board member Isabel Schnabel. Reports of an unexpected breakthrough by Ukraine’s forces in the war against Russia also helped to buoy sentiment on the euro.
“We are clearly in a mini-correction phase in the dollar at the moment, largely triggered by the recovery in risk sentiment and some unwinding of stretched long dollar positions,” said Francesco Pesole, an FX strategist at ING Group.
THE BIO
Favourite author - Paulo Coelho
Favourite holiday destination - Cuba
New York Times or Jordan Times? NYT is a school and JT was my practice field
Role model - My Grandfather
Dream interviewee - Che Guevara
UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
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- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
UAE currency: the story behind the money in your pockets
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
more from Janine di Giovanni
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
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In criminal cases, you can contact the police for additional support
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'Doctor Strange in the Multiverse Of Madness'
Director: Sam Raimi
Cast: Benedict Cumberbatch, Elizabeth Olsen, Chiwetel Ejiofor, Benedict Wong, Xochitl Gomez, Michael Stuhlbarg and Rachel McAdams
Rating: 3/5
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
