The euro and the yen witnessed gains against the US dollar, as the euro's movement in the positive zone was supported by comments from European Central Bank officials, while the rise in the yen came thanks to the slowdown in US revenues.

The euro rose against the US dollar in trading as of the writing of this article by 0.15%, maintaining its gains for the second day, with its movement continuing in the positive zone, with the expectation of more data supporting the future of interest rates in Europe during this year.

Note that the Euro lost 0.9% against the dollar last week, the first weekly loss in a month due to renewed concerns about the current gap in interest rates between Europe and the United States. Therefore, attention is now on the comments of Council members, awaiting more evidence about the future of these prices and what is the period during which any change is expected to occur.

The yen also rose against the dollar after it had reached its lowest level in three weeks, as it began to recover from yesterday’s trading in which it achieved an increase of 0.3%, reaching today by achieving an increase of 0.6% thanks to the slowdown in US revenues, while waiting for more evidence. About the future path of interest rates in the United States, noting that this rise comes as the yen rises despite the data issued today in Tokyo, which reduces the pressure on the Central Bank of Japan to accelerate the exit from the ultra-loose monetary policy and negative interest rates.

Reaching the US dollar, as the markets are monitoring the release of the US inflation reading, which will cast a shadow on the currencies and especially on the US dollar. This is due to the evidence that the Federal Reserve will continue to raise interest rates A/No during the current year, coinciding with expectations that inflation will rise again from 3.1%. By the end of November, it reached 3.2% by the end of December. Therefore, if expectations are higher, there is a possibility that the Federal Reserve will continue to tighten monetary policy, but if it is lower, this will favor the second scenario, which is the possibility of starting to reduce interest rates soon.

*All data provided is intended for educational or informational purposes only and should not be considered investment advice.