The Euro, British pound, and Swedish Krona all rose against the U.S. dollar on Tuesday following the release of an array of European economic data. This includes UK and eurozone job figures.
While the Swedish crown rose 0.12% to 10.3795 crowns per dollar, the sterling rose 1.25% to $1.1906; a three-month high. The euro gained 0.8% to $1.0406.
“Due to concerns about a deep recession over the winter the index had completely collapsed recently. In view of the mild start to the winter heating period and the well-filled gas stores analysts are likely to have got their hopes up that things might not turn out to be quite so bad,” Antje Praefcke, FX Analyst at Commerzbank, commented. According to Praefcke, this change of circumstance has restored investor confidence in the eurozone.
Affecting the U.S. dollar were comments by Fed Vice Chair Lael Brainard and Fed Governor Christopher Waller that interest rates need to continue being risen in order to battle inflation. The recent Federal Reserve interest rate hike saw the dollar tumble by 3.9% last week; its worst performance since March 2020. While the European Central Bank (ECB) is likely to continue raising its own interest rates, France’s central bank chief Francois Villeroy de Galhau assured that such measures are unlikely to sustain over the long term.
