Forex

Euro backs off five-week high on European growth risks

2022-08-15 10:51:43 GMT (Economies.com)

Euro fell in European trade for another session off five-eek highs on active profit-taking, amid mounting risks about European growth and after an interest rate cut in China.

 

Dollar is also gaining considerable ground following disappointing Chinese data, which cast doubt on the overall performance of the global economy. 

 

EUR/USD fell 0.6% to 1.0192, after losing 0.6% against dollar, the first loss in five days, off five-week highs at 1.0369 on profit-taking. 

 

Euro maintained a 0.8% profit last week against dollar, the third weekly profit in a month. 

 

Growth Risks

 

Analysts continue to doubt economic growth prospects in Europe as energy supplies collapse due to the ongoing crisis in Ukraine, in turn hurting euro's standing. 

 

The People's Bank of China earlier cut interest rates unexpectedly, on one-year lending rates to certain loans by 10 basis points to 2.75%.

 

The Dollar

 

The dollar index rose over 0.6% on Monday for another session against a basket of major rivals. 

 

A batch of weak Chinese industrial data boosted haven demand on the greenback, ahead of important US retail sales data and the Fed's minutes. 

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