Euro Is At A Two-Month Low Against US Dollar

The Euro is at a two-month low against the US dollar. EUR/USD exchange rate fell to 1.1886 in the first half of the day.

While the European Central Bank (ECB) decided to continue its asset purchases at its last meeting, it expressed that they were more optimistic about the economic indicators for the region. The FED (US Federal Reserve), on the other hand, decided to continue to purchase assets of 120 billion dollars at the FOMC meeting held this week, but started to discuss its reduction, and two interest rate hikes were predicted for 2023 in the dot chart with the estimates of its authorities. The forecast that the FED will switch to an earlier tight monetary policy due to inflation caused an increase on the US dollar this week. The EUR/USD parity, which started the week at 1.21, dropped to 1.1886 in the first half of the day, thus recording the lowest level since April 13.

The performance of EUR/USD parity in the first half of 2021 was as follows:

*Completing the first quarter of the year with depreciation, the pair saw the highest 1.2350 and the lowest 1.17 in this period. *It increased to 1.2265 by recovering its losses in April and May. * While it saw the highest level of 1.2254 in June, today, it recorded the lowest level of 1.1886. * With the decline this month, the pair recorded a 2.5% decline on an annual basis. The parity, which was traded around 1.08 level before March 2020, when the pandemic exploded, started to rise as a result of the expansion of the central banks due to the pandemic and the depreciation of the dollar. While the level of 1.17 is viewed as support in the medium term, the 1.20-1.2050 range stands out as resistance in the short term.