The euro could break its five-week losing streak following statements by the head of the U.S. Federal Reserve
The European currency rose against the dollar, recouping some of its losses following signals of a possible pause in the U.S. monetary tightening cycle
Following Kevin Warsh's remarks, the euro strengthened against the dollar / Photo: Unsplash.com / Ibrahim Boran
On October 16, the euro rose 0.3% against the U.S. dollar to $1.1257, recouping some of its losses after hitting a 17-month low on Wednesday. Bloomberg noted that this could mark the end of the European currency’s five-week losing streak against the U.S. dollar. According to the agency, the euro is strengthening amid statements by Federal Reserve (Fed) Chairman Kevin Warsh, which the market interpreted as a signal that rates would remain unchanged at the central bank’s meeting this month.
On October 16, all G10 currencies except the Japanese yen rose against the dollar, according to Bloomberg. Midweek, better-than-expected U.S. inflation data reinforced expectations of a Fed rate hike and pushed the dollar higher; however, remarks by Warsh at a meeting of the International Monetary Fund halted its rise and supported the euro.
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