The euro hit a one-year high against the dollar on Wednesday afternoon at around 1.1210, after which it made a sharp turnaround, dropping to 1.1130 in a short period of time for no apparent reason. The move was likely driven by buy/sell positions ahead of the New York Fed’s conference speech on Thursday, as investors anticipate that the Fed’s 50 basis point rate cut last week will be followed by further cuts at a slower pace.
Fed Chairman Jerome Powell will also speak at around 3:20 p.m. Hungarian time, but before that, at 3:30 p.m., new weekly jobless claims, durable goods orders inventory, revised GDP and revised PCE will be released. This morning, the EUR/USD exchange rate was around 1.1150, meaning that the euro was barely able to strengthen again.
The forint also felt some change in the dollar on Wednesday afternoon: it fell to a two-week low against the euro at around 395.5, and is still trading this morning around 395.3, and against the dollar the exchange rate rose to 355.5 and is now 354 and has fallen to 0.5.
Cover image is an illustration. Cover image source: Getty Images
