Euro rallies as ECB signals end to negative rate

Euro rallies as ECB signals end to negative rate

Euro rallies as ECB signals end to negative rate

Euro rallies as ECB signals end to negative rate

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The euro jumped one percent as opposed to the dollar Monday after European Central Bank chief Christine Lagarde signaled the give up of ECB bad interest rates.

The euro struck a one-month high at $1.0688 after Lagarde stated the imperative financial institution might possibly draw a line beneath the era of bad interest prices by way of September thanks to soaring eurozone inflation.

“That’s something that we were waiting for so long,” noted Swissquote analyst Ipek Ozkardeskaya.

“Lagarde is finally showing that the (inflation) situation is serious in Europe as well,” she told AFP.

Central banks around the world are increasing interest rates to tackle the highest inflation in decades but so far the ECB has refused to follow the likes of the Federal Reserve and Bank of England in hiking borrowing costs from record-low levels.

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Eurozone inflation soared by an all-time high of 7.5 percent in April.

The surge has been driven by soaring energy and food prices as economies reopen from pandemic lockdowns and following Russia’s invasion of Ukraine.

Oil prices jumped more than one percent Monday.

Elsewhere, stock markets mostly climbed after US President Joe Biden said he was considering lifting some trade tariffs imposed on China by his predecessor Donald Trump.

Tariffs on hundreds of billions of dollars of Chinese imports are due to expire in July, and Biden has faced growing calls to get rid of the punitive duties to help combat the highest US inflation in more than four decades.

Biden’s comments Monday came during a visit to Tokyo.

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The president added that while a US recession was not inevitable, he acknowledged the economic pain felt by American consumers over soaring inflation.

Ending the price lists could help cut roaring US inflation by using making imports inexpensive.

Biden additionally announced that thirteen nations had joined a new, US-led Asia-Pacific exchange initiative.

Investors may be seeking the release on Wednesday of mins from the closing Federal Reserve assembly for clues at the pace of future interest fee hikes by way of the United States vital bank.

 

– Key figures at around 1100 GMT –
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Euro/dollar: UP at $1.0670 from $1.0564

Pound/dollar: UP at $1.2576 from $1.2497

Euro/pound: UP at 84.82 pence from 84.50 pence

Dollar/yen: DOWN at 127.45 yen from 127.86 yen on Friday

London – FTSE 100: UP 1.0 percent at 7,466.44 points

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Frankfurt – DAX: UP 0.7 percent at 14,083.07

Paris – CAC 40: UP 0.2 percent at 6,295.88

EURO STOXX 50: UP 0.4 percent at 3,672.72

Tokyo – Nikkei 225: UP 1.0 percent at 27,001.52 (close)

Hong Kong – Hang Seng Index: DOWN 1.2 percent at 20,470.06 (close)

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